Globes, January 23, 2003
Concord EFS buys Cyota e-payment solution
| The solution will provide MasterCard SecureCode and Verified by Visa systems to Concord's 6,200 financial institution clients.
|Israel's Cyota announced on Wednesday that its SecureSuite e-payment security platform had been selected by US electronic commerce provider Concord EFS (NYSE: CE). The solution will provide MasterCard SecureCode and Verified by Visa systems to Concord's 6,200 financial institution clients.
Under the agreement, Concord will license Cyota's SecureSuite Processor Edition technology as an in-house installation at its data centers. Cyota did not disclose the value of the deal.
Concord EFS is one of the biggest electronic transaction processing companies in the world, and has the largest network of ATM machines in the US. For the first nine months of 2002, its revenue rose 27% to $1.57 billion.
"We are delighted to team with Concord and anticipate a mutually-beneficial relationship beginning with MasterCard SecureCode and Verified by Visa and hopefully moving forward into new applications," said Naftali Bennett, Cyota CEO.
MasterCard SecureCode and Verified by Visa are new authentication initiatives designed to provide Internet shoppers with a virtual receipt to sign at the point of purchase, thus reducing online fraud. Both solutions are integrated in Cyota's SecureSuite.
Cyota was founded in 1999 by Naftali Bennett (CEO), Michal Tsur, Ben Enosh, and Lior Golan. Investors include Israel Seed Partners, Giza GE Ventures, Jafco Investment (Asia Pacific) Fund, Quan Ventures of Switzerland, Dresdner Kleinworth Benson, Poalim Capital Markets, and private investors. In December 2002, Cyota completed an $8 million third financing round, which was led by RRE Ventures.