The eBay subsidiary has agreed to pay US$169 million in cash for Tel Aviv-based Fraud Sciences. The deal is expected to close within 30 days.
The fraud-detection supplier's chief operating officer, Yossi Barak, and founders Shvat Shaked and Saar Wilf are expected to join PayPal's fraud management team. President and Chief Executive Officer Gadi Maier will provide support to the company during the integration period, according to PayPal.
Spokeswoman Amanda Pires told SCMagazineUS.com that the majority of Fraud Sciences' employees have accepted positions with San Jose, Calif.-based PayPal, but the online payment-processing giant is not releasing details on new hires.
Maier, she said, “is probably not staying long term.”
Fraud Sciences' technologies - which distinguish between real and fake transactions - will help protect PayPal customers, who are frequent targets of man-in-the-middle attacks and phishing schemes, Scott Thompson, PayPal president said today in a news release.
“Integrating Fraud Sciences' risk tools with PayPal's sophisticated fraud-management system should allow us to be even more effective in protecting eBay and PayPal's hundreds of millions of customers around the world,” he said.
eBay announced last week that Meg Whitman, president and CEO, will resign on March 31 but remain on the company's board of directors. John Donahoe, president of eBay Marketplaces, is set to succeed her.
See original article on scmagazineus.com
PayPal to acquire Fraud Sciences for US$169 million
By Frank Washkuch on Jan 29, 2008 11:25AM