PayPal to buy Simility for $120M Cash

Paypal is on drive to give further benefit to its 237 million customers by the recent acquisitions of Palo Alto, California-based Simility sells machine-learning-based technology to help online merchants spot fraudsters and improve risk management, a fraud prevention specialist, for $120 million in cash.

PayPal had been an investor in Simility (it owns three percent of the company) along with Accel, the Valley Fund, Trinity Ventures and others. The startup had raised just under $25 million and was last valued at $52.75 million, according to figures from PitchBook, making this a decent return for its backers. The deal is expected to close in Q3.

Online fraud is increasingly seen as an urgent threat by banks across the world. Fraudsters obtain login credentials with social engineering, by hacking databases or by simply buying them on the Dark Web. With the growth of E-Commerce, organization can spread their business to national and international markets with minimum investment of capital. This huge growth in the popularity of e-commerce has led to a new generation of associated cyber threats....Read More