Relx to buy California-based ThreatMetrix for £580m

Relx Group, formerly known as Reed Elsevier, has agreed to buy California-based security technology company ThreatMetrix for £580m in cash.

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.

The group will become part of Relx’s risk & business analytics division, 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.

LexisNexis Risk Solutions already has an established commercial partnership with ThreatMetrix, including the company’s device intelligence solutions in its Risk Defense Platform.

Relx said that further integration of ThreatMetrix’s capabilities in device, email and social intelligence will build a more complete picture of risk in today’s global, mobile digital economy, providing both physical and digital identity solutions.

Risk & Business Analytics chief executive 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.”

The deal, which is due to close in the first half of this year, is not expected to have a material impact on 2018 Relx group earnings.