Mastercard announced today that it is acquiring RiskRecon, a Salt Lake City startup that uses publicly available data to construct security assessments of organizations. The purchase price was; however, not disclosed by either of the companies.
Brief about the companies
Mastercard (NYSE: MA), is a technology company working in the field of the global payments industry. According to Mastercard, its global payments processing network connects consumers, merchants, financial institutions, governments, and businesses in more than 210 countries and territories. The company’s products and solutions support everyday commerce activities such as shopping, traveling, help run businesses, and manage finances securely and more efficient for everyone.
RiskRecon claims that it is the only continuous vendor monitoring solution that delivers risk-prioritized action plans custom-tuned to match its customers’ requirements. The company says it provides the world’s easiest path to understand and act on third-party cyber risk. It aims at ensuring that its partners get a scaled-up risk management program.
According to Crunchbase’s data, RiskRecon was launched in 2015 and it has raised $40 million. Its investors included Accel, Dell Technologies Capital, General Catalyst, and F-Prime Capital.
It’s worth observing that the company was not alone in the space, competing with New York City-based SecurityScoreCard, which launched in 2013 and has risen over $112 million, according to Crunchbase. The last investment came in June for $50 million.
Cybersecurity is important
It has become vitally crucial for financial services companies like Mastercard to help customers navigate through cybersecurity, and RiskRecon provides customers with an objective score of a company’s risk profile.
“The innovations from the talented team at RiskRecon will further accelerate our suite of cyber solutions designed to help financial institutions, merchants and governments secure their digital assets,” explained Ajay Bhalla, President of cyber and intelligence for Mastercard. “Through a powerful combination of AI and data-driven advanced technology, RiskRecon offers an exciting opportunity to complement our existing strategy and technology to secure the cyberspace.”
RiskRecon leverages the available information on the web from companies as part of the ‘act of doing business.’ It said, “If you stand up web servers and DNS servers, these are intentionally discoverable because they are providing services on the internet. Systems reveal the software being run and version information from which you can determine security performance”.
“Mastercard has been one of those brands that have stood out as a true innovator, focusing on the real problems of real businesses”, said Kelly White, Chief Executive Officer, and Co-Founder, RiskRecon. She continued, “By becoming part of their team, we have an opportunity to scale our solution and help companies in new industries and geographies take steps to better manage their cybersecurity risk.”