CyberSource to Acquire Authorize.net in $565 million deal

[Kristijntje]

Press release:

- CyberSource Corporation (NASDAQ: CYBS), a leading provider of electronic payment and risk management solutions, and Authorize.Net Holdings, Inc. (NASDAQ: ANET) , a leading provider of IP based payment solutions, today announced the signing of a definitive agreement whereby CyberSource will acquire Authorize.Net in a stock and cash transaction valued at approximately $565 million, as of the close of the NASDAQ Global Market System on June 15, 2007.

The acquisition joins two highly complementary businesses, positioning CyberSource to further capitalize on the growing web-based payment opportunity. Both companies are leaders in enabling e-commerce businesses to accept online payments for goods and services. CyberSource, with approximately 20,000 customers, has traditionally focused on managing payments for mid-sized and enterprise customers. Authorize.Net, with over 175,000 customers, has specialized in small businesses. Collectively, the companies processed approximately 1.1 billion transactions in 2006, representing $65 billion of e-commerce. The acquisition will enable CyberSource to provide leading payment solutions to all segments of the e-commerce industry...

full press release: http://sev.prnewswire.com/computer-elect...007-1.html

Weinberg says smaller merchants will benefit from the deal because they will gain access to the sophisticated antifraud tools CyberSource provides to larger merchants today. “CyberSource is best in class, it’s what they’re known for,” he says. “The little guys don’t have the in-house capabilities to adequately protect themselves.”...

full article: http://www.internetretailer.com/dailyNews.asp?id=22806

[mandy]

Weinberg says smaller merchants will benefit from the deal because they will gain access to the sophisticated antifraud tools CyberSource provides to larger merchants today.

Authorize.net's anti-fraud suite does help reduce chargebacks and fraud by flagging questionable transactions .

[amy]

Weinberg says smaller merchants will benefit from the deal...

Authorize.net merchants will benefit if fees don't go up and if they aren't required to switch their carts to the CyberSource API.  Almost every cart supports Authorize.net.  The list of carts that support CyberSource is much smaller.

Authorize.net's anti-fraud suite does help reduce chargebacks and fraud

It's major shortcoming is that it's only for credit cards.  They don't offer fraud protection tools for their Echeck.net service.

[sneakymagenta]

Authorize.net merchants will benefit if fees don't go up

:ditto: 

[maggie777]

Weinberg says smaller merchants will benefit from the deal because they will gain access to the sophisticated antifraud tools CyberSource provides to larger merchants today. “CyberSource is best in class, it’s what they’re known for,” he says

I'll vouch for the effectiveness of CyberSource's antifraud tools.