Mastercard acquires US cybersecurity firm Recorded Future, expanding its footprint into the threat intelligence world.
The two American firms announced the $2.65 billion agreement on Thursday in a press release and on social media.
Mastercard says the addition of Recorded Future’s threat intelligence capabilities will complement its existing suite of services, which delivers cyber resilience and trust to clients and cardholders.
Recorded Future’s cutting-edge AI technologies will be used to bolster Mastercard’s identity and fraud prevention, real-time decisioning, and cybersecurity services for its network of merchants and financial institutions.
The acquisition of the cybersecurity powerhouse “bolsters the insights and intelligence used to secure today’s digital economy – in the payments ecosystem and beyond,” Mastercard said.
Recorded Future is the world’s largest threat intelligence company, with more than 1,900 clients across 75 countries, including the governments of 45 countries and over 50% of the Fortune 100.
“Trust is the foundation of any relationship. Recorded Future adds to how we deliver that greater peace of mind before, during, and after the payment transaction,” said Craig Vosburg, chief services officer at Mastercard.
The credit card behemoth's purchase deal was made with Insight Partners, a venture capital and private equity firm that had gained controlling interest in Recorded Future with an all-cash transaction for $780 million in May 2019.
Exciting times ahead! 🎉@Mastercard is acquiring @RecordedFuture, combining two global leaders in digital security. With our world-class intelligence and AI, we’ll scale faster, helping more customers mitigate risks and protect the digital economy. https://t.co/9oQLk4knTb pic.twitter.com/B1SXq3k0D5
undefined Recorded Future (@RecordedFuture) September 12, 2024
'Need for Cyber defense is never greater'
“As new technologies are introduced and adopted, there is a rising risk of cyber threats. In 2024 alone, cybercrime is projected to cost $9.2 trillion globally,” the press release stated.
Mastercard explained that the "need for a holistic and global cyber defense has never been greater."
“Together we will innovate faster, create smarter models, and anticipate emerging threats before cyberattacks can take place – in payments and beyond,” Vosburg said.
Based in Massachusetts, Recorded Future threat intel services provide its client's real-time visibility into potential threats by analyzing a broad set of data sources to provide insights that enable its customers to take action to mitigate risks, it said.
The threat intelligence firm considers itself one of the first to use AI-powered analytics to generate accessible insights, easily understood by customers.
“Fifteen years ago, we created Recorded Future with a simple goal to secure the world with intelligence. By joining Mastercard, we see an opportunity to help more businesses and governments determine the steps to realize their full potential – and to enable everyone to feel safer in their daily lives,” said Christopher Ahlberg, CEO of Recorded Future.
Recorded Future said partnering with Mastercard will also increase the effectiveness of their technology platforms when it come to identifying security risks.
Since the two companies have collaborated with the launch of an AI-powered platform earlier this year, Mastercard says it has “doubled the rate in which compromised cards are identified, as compared to the same time period last year.”
Flashpoint CEO Josh Lefkowitz says the threat intelligence aspect of cybersecurity has consistently increased in importance over the years.
The Recorded Future “acquisition is a validation of the widespread, growing recognition of the mission-criticality of threat intelligence at the center of an organization's security posture.” said Lefkowitz.
Lefkowitz pointed out that this type of center movement shows how much threat intel is "on the radar for CISOs, CSOs, and the Board" – and necessary “to protect people and assets from an escalating array of threats, from breaches and ransomware to the fallout of geopolitical conflicts around the globe.”
The deal is expected to be finalized by the end of the first quarter in 2025.
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