Mastercard (MA) announced that it has agreed to acquire threat intelligence company Recorded Future from Insight Partners for $2.65 billion, aiming to strengthen its cybersecurity capabilities. Recorded Future is a threat intelligence company that serves over 1,900 clients, including 45 governments, and was acquired by Insight Partners in 2019 for over $780 million.
Furthermore, the acquisition is expected to close by the first quarter of 2025.
Why Is Mastercard Acquiring Recorded Future?
The increasing prevalence of new technologies has brought about a surge in cyber threats such as hacking and ransomware. Consequently, there is a growing need for enhanced fraud detection capabilities. Mastercard, which processed $9 trillion in transactions last year, is prioritizing this area by leveraging generative AI to stay ahead of these threats.
In fact, the payment processing giant is already working closely with Recorded Future to enhance its security measures. They have jointly launched a service that alerts financial institutions when a card might be compromised. Impressively, since its launch earlier this year, this service has doubled the rate of identifying compromised cards compared to last year.
Is MA a Good Stock to Buy Now?
Analysts remain bullish about MA stock, with a Strong Buy consensus rating based on 22 Buys and four Holds. Over the past year, MA has increased by more than 10%, and the average MA price target of $526.95 implies an upside potential of 8.6% from current levels.
