LexisNexis Risk Solutions To Buy ID Analytics From NortonLifeLock
LexisNexis Risk Solutions plans to spend $375 million to buy ID Analytics, which is used by 450 companies to make risk-based decisions that improve customer experience, enhance revenue, reduce fraud and drive cost savings.
LexisNexis Risk Solutions has agreed to purchase ID Analytics from NortonLifeLock for $375 million to enhance its credit and fraud risk assessment capabilities for enterprises.
The Atlanta-based risk management business said its proposed acquisition of San Diego-based ID Analytics will help with the delivery of risk insight through a combination of proprietary data, patented analytics, and near-real-time cross-industry consumer identity behavior.
“ID Analytics is widely recognized in the fraud and identity and credit risk space for its differentiated contributory data assets and advanced analytics capabilities,” LexisNexis Risk Solutions CEO Rick Trainor said in a statement. “Combined with our strengths of verifying and authenticating physical and digital identities, our customers will benefit from an even more comprehensive approach to detecting and preventing fraud and managing risk.”
The transaction is expected to close in the first calendar quarter of 2020, and LexisNexis Risk Solutions declined to make Trainor or another executive available for comment. NortonLifeLock’s stock is up $0.17 (0.64 percent) to $26.66 in trading Monday morning, while the stock for LexisNexis Risk Solutions parent company Relx is up $0.03 (0.12) to $25.31 in early Monday trading.
ID Analytics was founded in 2002, employs 128 people, and raised $35.2 million in outside funding before being acquired by LifeLock in March 2012. LifeLock was in turn purchased by Symantec for $2.3 billion, and three years later the entire company was rebranded as NortonLifeLock following the $10.7 billion sale of Symantec’s Enterprise Security division to Broadcom.
“The sale of ID Analytics is another step in the transformation of NortonLifeLock into a pure-play consumer cyber safety leader,” NortonLifeLock CEO Vincent Pilette said in a statement. “We can now be completely focused on our singular mission to protect all areas of consumers’ online lives.”
Pilette told investors in November that Tempe, Ariz.-based NortonLifeLock needs to eliminate $1.3 billion in costs, with the firm already cutting its head count by 8 percent over the previous quarter and putting four or five corporate campuses up or sale. The NortonLifeLock divestiture of ID Analytics comes just a week after Broadcom sold the Symantec Cyber Security Services business to Accenture.
ID Analytics will become part of the LexisNexis Risk Solutions Business Services group, which uses data, technology, linking and analytics to deliver actionable insight that enables businesses to better analyze and assess risk. More than 450 companies in the U.S. rely on ID Analytics to make risk-based decisions to improve customer experience, enhance revenue, reduce fraud and drive cost savings.
LexisNexis Risk Solutions and ID Analytics have complementary capabilities around fraud and identity management, with the two businesses offering analytics models and verification tools to help customers identify consumer risk. The two entities are also complementary in credit risk decision-making, utilizing data attributes to give organizations a better understanding of consumer risk and credit worthiness.
“Our acquisition of ID Analytics is in line with our growth strategy, which has organic growth as our cornerstone, enhanced by acquisitions targeting data and analytics capabilities that complement our existing business,” Trainor said in the statement.
As part of the deal, NortonLifeLock said its customers will continue to benefit from alerts powered by ID Analytics as well as the company’s strong ongoing data partnership with LexisNexis Risk Solutions.