Mastercard Expands Threat Intelligence Capabilities with $2.65 Billion Acquisition of Recorded Future
New York, Sept 12 (Reuters) – Mastercard has announced a major expansion of its cybersecurity capabilities with the acquisition of threat intelligence firm Recorded Future for $2.65 billion. This strategic move is aimed at enhancing Mastercard's ability to combat rising cyber threats as digital transactions and technologies become more prevalent.
The acquisition of Recorded Future, a company specializing in AI-driven threat intelligence, will bolster Mastercard’s efforts to protect against an increasing range of cyber threats, including hacking and ransomware attacks. Recorded Future, which uses advanced analytics to detect potential threats, is already collaborating with Mastercard on a service that alerts financial institutions about compromised cards. Since the service’s launch earlier this year, the rate of identified compromised cards has doubled compared to the previous year.
Mastercard’s purchase of Recorded Future aligns with its broader strategy to expand into value-added services (VAS), particularly in cybersecurity. The deal will enhance Mastercard's ability to provide comprehensive solutions for both network- and non-network-based transactions. According to TD Cowen analysts, this acquisition reinforces Mastercard’s commitment to achieving significant growth in its VAS sector, with expected mid- to high-teens percentage growth for fiscal year 2025.
Mastercard reported $9 trillion in gross dollar volumes last year, representing the total value of all transactions processed. The acquisition is set to close by the first quarter of 2025 and will add significant depth to Mastercard's existing cybersecurity portfolio, which includes services such as identity fraud prevention and real-time decision-making tools.
Recorded Future, which serves over 1,900 clients across 75 countries—including the governments of 45 countries—was previously acquired by Insight Partners in 2019 in a deal valued at more than $780 million. This acquisition underscores Mastercard’s ongoing efforts to enhance its cybersecurity capabilities amidst a growing threat landscape in the financial sector.
