Mastercard has agreed to acquire the cybersecurity firm Recorded Future for $2.65 billion from Insight Partners. Recorded Future, based in Boston, serves 1,900 clients across 75 countries and generates around $300 million in annual revenue.
The acquisition is expected to strengthen Mastercard’s cybersecurity capabilities, building on their existing partnership, which uses AI to help banks detect compromised credit and debit cards.
Cybersecurity is increasingly vital in the digital payments industry due to rising threats like identity theft and online hacks. Mastercard has made several similar acquisitions in recent years, including Baffin Bay, RiskRecon, and Brighterion, with the goal of bolstering its cybersecurity services. Analysts believe this move will enhance Mastercard’s competitive edge against Visa, another major player investing heavily in cybersecurity.
CEO Michael Miebach emphasized the use of AI to predict and prevent fraud, mentioning collaborations with fintech companies like Revolut. Despite the acquisition, Recorded Future will continue to operate independently as a subsidiary of Mastercard. Employee retention details remain unclear, but Mastercard aims to integrate teams to drive further innovation in cybersecurity.
