The home improvement chain also said the malware responsible for the breach has been removed from all stores.
ACI is paying $205 million for ReD, and says the acquisition will help it provide stronger payment security for online retailers.
ACI says it powers online payments and banking services for more than 5,000 banks, retailers, billers and processors globally. One retailer ranked in the Internet Retailer Top 500 Guide, No. 77 Crate and Barrel, identifies ACI as its online payment processor.
ReD, previously called Retail Decisions, provides fraud detection services to retailers including seven merchants in the Top 500 Guide:
- Sears Holdings Corp., No. 5
- Nordstrom Inc., No. 24
- Karmaloop.com, No. 134
- The Finish Line Inc., No. 148
- Abt Electronics Inc., No. 149
- The Limited, No. 241
- Bidz.com Inc., No. 323
ReD also supplies payment security software to one retailer in the Second 500 Guide, Tupperware Brand Corp., ranked No. 576.
Fraud prevention is a major focus for ACI, and the addition of ReD will allow the company to be well positioned to capitalize on the growth in online payments and the growth threat of fraud, the company says. “Retailers are currently operating disparate systems for their online, mobile and point-of-sale operations,” says Philip Heasley, president and CEO, ACI Worldwide. “ACI and ReD together have an unrivaled merchant retail solution—global, omnichannel with integrated fraud management built on Universal Payments technology. This solution will not only guarantee a consistent, unified customer experience in any retailer modality, but also will be a key part of our real-time commerce, any-to-any transaction strategy.”
The deal is expected to close in the third quarter of 2014. If it closes in the middle of the third quarter, ACI expects ReD will generate approximately $18 million in revenue for the remainder of 2014.