PayPal to Acquire Simility to Expand Global Fraud Prevention and Risk Management Capabilities for Merchants
SAN JOSE, Calif.--(BUSINESS WIRE)--
PayPal Holdings, Inc. (NASDAQ: PYPL) announced today that it has agreed
to acquire Simility, a leading fraud prevention and risk management
platform, for a purchase price of $120 million in cash, subject to
certain adjustments. The acquisition of Simility will enhance PayPal's
ability to deliver fraud prevention and risk management solutions to
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PayPal to Acquire Simility to Expand Global Fraud Prevention and Risk Management Capabilities for Merchants (Graphic: Business Wire)
"Digital commerce has exploded, and fraudsters have taken note, adapting
and developing new methods to carry out their crimes," said Bill Ready,
chief operating officer, PayPal. "PayPal has been at the forefront of
developing innovative fraud prevention and risk management solutions for
nearly 20 years, and now, merchants will be able to configure those
solutions to manage the unique complexities of their businesses.
Together with Simility, we will be able to put more control in the hands
of our merchants to fight fraud while helping make commerce experiences
faster and more secure."
Following the close of the transaction, merchants on the PayPal platform
will gain access to best-in-class fraud tools that can be customized to
reflect the nuances of their businesses through their existing account
management dashboard. These machine learning-powered tools, which
dynamically adapt and evolve with each transaction, will enhance payment
experiences for merchants and their customers by helping to reduce
fraudulent payment activity and, in some cases, verifying transactions
that may have otherwise failed.
"Our vision for Simility was to create an adaptive risk management
platform that empowers organizations operating in a digital world to
manage an evolving fraud and risk landscape," said Rahul Pangam,
co-founder and CEO, Simility. "We are excited to enter the next phase of
our growth with PayPal and are thrilled to join them to help drive the
next generation of payment and commerce solutions while scaling our
Subject to customary closing conditions, this transaction is expected to
close in the third quarter of 2018.
Fueled by a fundamental belief that having access to financial services
creates opportunity, PayPal Holdings, Inc. (NASDAQ: PYPL) is committed
to democratizing financial services and empowering people and businesses
to join and thrive in the global economy. Our open digital payments
platform gives PayPal's 237 million active account holders the
confidence to connect and transact in new and powerful ways, whether
they are online, on a mobile device, in an app, or in person. Through a
combination of technological innovation and strategic partnerships,
PayPal creates better ways to manage and move money, and offers choice
and flexibility when sending payments, paying or getting paid. Available
in more than 200 markets around the world, the PayPal platform,
including Braintree, Venmo and Xoom, enables consumers and merchants to
receive money in more than 100 currencies, withdraw funds in 56
currencies and hold balances in their PayPal accounts in 25 currencies.
For more information on PayPal, visit www.paypal.com/about
or follow us at @PayPalNews.
For PayPal Holdings, Inc. financial information, visit investor.paypal-corp.com.
Simility offers real-time risk and fraud decisioning solutions to
protect global digital businesses. Simility's offerings are underpinned
by the Adaptive Decisioning Platform built with a data-first approach to
deliver continuous risk assurance. By combining artificial intelligence
and big data analytics, Simility helps businesses orchestrate complex
decisions to reduce friction, improve trust and solve complex fraud
problems. Built by industry veterans, Similty is trusted by some of the
world's leading consumer brands across financial services, payment
processors and commerce merchants. For more information on Simility,
This announcement contains "forward-looking" statements within the
meaning of applicable securities laws. Forward-looking statements and
information relate to future events and future performance and reflect
PayPal's expectations regarding the impact of this transaction on
PayPal's and Simility's financial and operating results and business,
the operation and management of Simility after the acquisition, and the
timing of the closing of the acquisition. Forward-looking statements may
be identified by words such as "seek", "believe", "plan", "estimate",
"anticipate", expect", "intend", and statements that an event or result
"may", "will", "should", "could", or "might" occur or be achieved and
any other similar expressions.
Forward-looking statements involve risks and uncertainties which may
cause actual results to differ materially from the statements made, and,
accordingly, readers should not place undue reliance on forward-looking
statements and information. Factors that could cause or contribute to
such differences include, but are not limited to, the timing and
possible outcome of security holder and regulatory approvals in
connection with the transaction, the possibility that the transaction
may not close, the reaction to the transaction of Simility customers and
business partners, the reaction of competitors to the transaction, the
retention of Simility's employees, PayPal's plans for Simility, economic
and political conditions in the global markets in which PayPal and
Simility operate, the future growth of PayPal's and Simility's
businesses and the possibility that integration following the
transaction may be more difficult than expected. More information about
these and other factors can be found in PayPal Holdings, Inc.'s most
recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K and other filings with the Securities and
Exchange Commission (the "SEC"), and its future filings with the SEC.
The forward-looking statements contained in this press release speak
only as of the date hereof. PayPal expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statements contained herein to reflect any change in the
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180621006012/en/
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Source: PayPal Holdings, Inc.
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