Mastercard / RiskRecon 2020
Mastercard acquired RiskRecon for $150M on December 12, 2019.
- Target
- RiskRecon
- Acquirer
- Mastercard
- Deal value
- $150M
- Deal type
- Cash
- Announced
- December 12, 2019
- Sub-sector
- Regtech
Transaction overview
- Mastercard announced the acquisition of RiskRecon on December 12, 2019 for approximately $150 million in cash.
- The deal closed on January 8, 2020, roughly four weeks after announcement.
- RiskRecon is a Salt Lake City-based cybersecurity firm that rates the security posture of third-party vendors.
- The company's platform continuously monitors internet-facing systems and scores organizations on cyber risk exposure.
- Mastercard cited third-party cyber risk management as the primary rationale for the purchase.
- Mastercard operates a global payments network processing billions of transactions annually across more than 210 countries.
- RiskRecon had raised approximately $30 million in venture funding before the acquisition.
Why it matters
- The deal reflected growing demand among financial institutions for automated tools to assess cyber risk across supplier and partner networks.
- Mastercard's purchase signaled that payments networks were expanding beyond transaction security into broader enterprise cyber risk services.
Strategic rationale
Mastercard acquires third-party cyber risk assessment platform to expand its enterprise cybersecurity offering for issuers and merchants.
Deal terms & multiples
About RiskRecon
RiskRecon is a cybersecurity company founded in 2015 and headquartered in Salt Lake City, Utah. The company built a platform that continuously scans internet-facing infrastructure and assigns risk ratings to organizations based on observed security conditions. Its primary use case is third-party and supply-chain cyber risk management, allowing enterprises to monitor vendors without requiring direct access to their systems. Customers included financial institutions, insurers, and large enterprises seeking automated visibility into partner security posture.
- Founded
- 2015
- HQ
- United States
- Prior funding
- ~$30 million in venture funding, including a $25 million Series B in 2019 led by Dell Technologies Capital
- Key metric
- Monitored security ratings for hundreds of thousands of organizations globally
About Mastercard NYSE: MA
Mastercard is a Purchase, New York-based payments technology company founded in 1966 and listed on the New York Stock Exchange. The company operates a global network connecting consumers, merchants, financial institutions, and governments across more than 210 countries and territories. Mastercard reported net revenue of approximately $16.9 billion in 2019. Beyond core card processing, the company has built a portfolio of data analytics, fraud detection, and cybersecurity services through a series of acquisitions.
- Founded
- 1966
- Ticker
- NYSE: MA
Frequently asked questions
How much did Mastercard pay for RiskRecon?
Mastercard paid approximately $150 million in cash. The deal was announced December 12, 2019 and closed January 8, 2020.
What does RiskRecon do?
RiskRecon's platform continuously monitors internet-facing systems and scores organizations on their cyber risk exposure. It is primarily used for third-party and supply-chain risk management.
Why did Mastercard acquire RiskRecon?
Mastercard cited the need to help financial institutions and enterprises manage cyber risk across their vendor and partner networks. RiskRecon's automated ratings platform complemented Mastercard's existing cybersecurity services.
When did the Mastercard RiskRecon deal close?
The acquisition closed on January 8, 2020, approximately four weeks after the December 12, 2019 announcement.
How much funding had RiskRecon raised before the acquisition?
RiskRecon had raised approximately $30 million in venture funding, including a $25 million Series B in 2019 led by Dell Technologies Capital.
Where is RiskRecon headquartered?
RiskRecon is headquartered in Salt Lake City, Utah. The company was founded in 2015.
Sources
- mastercard.com /news/press/press-releases/2019/december/mastercard-acquires-riskrecon/