Mastercard Incorporated (MA - Free Report) has agreed to purchase RiskRecon, a market-leading provider of AI and data analytics solutions to help companies support their cyber systems and infrastructure. However, other terms of the transaction were not disclosed. Subject to closing conditions, the deal is expected to be completed in the first quarter of 2020.
Increasing use of information technology induced an escalation in cybercrime. The digital revolution created a highly interconnected world with sensitive data — personal, business and other — on networks, making many susceptible to cyber-crimes. Data breaches, electronic thefts, ransomware attacks and vandalism, denial of service attacks and copyright infringement are a few challenges plaguing the companies big or small. This shakes off customer confidence in the companies.
Companies dealing with cards are a common target for hackers and it is here that RiskRecon’s risk-detection abilities are likely to help Mastercard tackle the threat. With the addition of RiskRecon’s capabilities, pioneering scanning and evaluation technologies, Mastercard expects to provide better protection solutions. RiskRecon will further speed up Mastercard’s cyber solutions to assist financial institutions, governments and merchants to safeguard their digital assets, such as consumer and payment data. The acquired company will also continue providing cyber security measures across a wide range of industries, such as manufacturing and healthcare.
In addition to supporting Mastercard solutions, RiskRecon will continue providing cyber security solutions across a broader set of industries including healthcare and manufacturing.
The move is in line with Mastercard’s commitment to deal with real problems of real business houses. It is already providing a number of security solutions to businesses. For example, its Early Detection System cautions banks when customer accounts are endangered with data breaches. Earlier this year, the company along with The Global Cyber Alliance also launched a Cybersecurity Toolkit designed to protect small and medium businesses.
Shares of this Zacks Rank #2 (Buy) company have soared 70.2% in a year’s time, outperforming its industry’s growth of 50%.
Other Stocks to Consider
Investors interested in the same space might also consider some other top-ranked stocks like CURO Group Holdings Corp. (CURO - Free Report) , Cardtronics PLC (CATM - Free Report) and Global Payments Inc. (GPN - Free Report) .
CURO Group Holdings is a diversified consumer finance company. This Zacks #2 Ranked stock delivered a positive earnings surprise of 16.6% over the preceding four quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardtronics offers automated consumer financial services through its network of automated teller machines and multi-purpose financial services kiosks. The company came up with average four-quarter beat of 28.8% and flaunts a Zacks Rank of 1.
Global Payments provides payment technology and software solutions for card, electronic, check and digital-based payments. The company has a Zacks Rank of 2 and average four-quarter positive surprise of 2.4%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>