Experian has acquired device identification company 41st Parameter for $324m (£200m), in order to strengthen its web fraud detection and authentication offering.

The acquisition should boost Experians revenues by around $26m in the first year, and help expand its fraud prevention division to make up about ten per cent of its overall business over the next few years, up from between six and seven per cent currently.

41st Parameter, founded in 2004, specialises in risk-based authentication, which varies the stringency of security measures depending on the value and risk associated with the transaction.

Its daughter company, AdTruth, uses the parent companys technology as a mobile device identifier which enables brands to target consumers more accurately on mobile, but with due regard for consumer privacy, and without identifying individual consumers. 

“This acquisition is part of our commitment to provide the most complete set of fraud detection and identity authentication capabilities on the market today,’’ said Joy Griffiths, global managing director, Experian Decision Analytics. “We are pleased to incorporate 41st Parameter’s web fraud detection to enable our clients to make real-time security decisions that improve their business profits.’’