RELX Group, the parent company of LexisNexis has announced that it has entered into a definitive agreement to acquire the entire issued share capital of ThreatMetrix, for a consideration of £580 million.

ThreatMetrix is a leader in the global risk-based authentication sector, headquartered in San Jose, California and founded in 2005. ThreatMetrix’s technology analyses connections among devices, locations, anonymised identity information and threat intelligence, and combines this data with behavioural analytics to identify high-risk digital behaviour and transactions in real time.

ThreatMetrix’s Digital Identity Network analyses over 100 million transactions per day across 35,000 websites from 5,000 customers. This makes it the one of the largest repositories of online digital identities in the world, encompassing 1.4 billion unique online identities from 4.5 billion devices in 185 countries. ThreatMetrix will become part of Risk & Business Analytics, which under the LexisNexis Risk Solutions brand addresses fraud and authentication challenges by applying advanced analytics to physical identity attributes, including identity credentials, addresses and asset ownership.

Risk & Business Analytics CEO, Mark Kelsey, said “ThreatMetrix is widely recognised as a leader in the digital identity space. Bringing that together with our own strengths in physical identity attributes will give our clients across all forms of commerce and geographies a more reliable, comprehensive approach to fraud and identity risk management while maintaining the privacy and security principles our customers have come to expect. The acquisition is in line with our organic growth driven strategy, supported by acquisitions of targeted data sets and analytics that are natural additions to our existing business.”

Reed Taussig, President and CEO of ThreatMetrix, said: “Our partnership with LexisNexis Risk Solutions over the past two years has fully demonstrated the strong synergies between our two organizations. The benefits our shared customers have realized from the integration of our respective products are unmatched in the industry. Over the past ten years the ThreatMetrix team has pioneered the digital identity space, and by combining the strength of LexisNexis Risk Solutions and ThreatMetrix into a single business, our customers, partners, and employees will benefit with a unique and compelling market opportunity.”