Security - Monday, January 28, 2008
PayPal To Pay $169M For Fraud Sciences
PayPal will pay $169M in cash to acquire Fraud Sciences, an Israeli company that develops online risk and security tools.
PayPal, a unit of eBay (NSDQ: EBAY), will use Fraud Sciences' technology to enhance the fraud management systems of both PayPal and eBay.
FraudScience has raised $7M from BRM Capital (which holds a 40% stake), angel investor Guy Gamzu, and Redpoint Ventures.
Founded by former Israeli intelligence experts, Fraud ciences set itself up to sort out legitimate bidders from suspicious bidders. The company was founded in 2001 but didn't launch until the end of 2006.
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