Visa to Acquire AI-Powered Fraud Detection Leader Featurespace

Visa has entered into a definitive agreement to acquire Featurespace, a UK-based provider of AI-powered financial fraud detection technology, for an undisclosed sum.

Founded in 2008 and headquartered in Cambridge, Featurespace serves numerous prominent financial institutions, including HSBC and NatWest, with its machine learning-based fraud prevention tools. The company has raised approximately $100 million from investors, including the late technology entrepreneur Mike Lynch.

Visa stated that the acquisition would enhance its portfolio of fraud detection and risk-scoring solutions, enabling better protection of the payments ecosystem through AI-driven technology.

According to an August report by Sky News, discussions about the acquisition valued Featurespace at around £700 million. The transaction is expected to close in 2025, pending customary regulatory approvals.

Antony Cahill, Visa’s global head of value-added services, commented, “Featurespace’s AI expertise will significantly enhance our existing product offerings, allowing us to tackle our clients’ most pressing challenges.”

IP Group, Featurespace’s largest shareholder, anticipates a total cash return of £134 million from the sale, with £119 million payable upon completion and £15 million deferred. Greg Smith, CEO of IP Group, stated, “After over a decade of support, we are thrilled with this record-breaking exit, delivering a strong financial return for IP Group.”