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Experian agreed to acquire The 41st Parameter, a US provider of device-identification and web-fraud detection services, on 1 October 2013; the deal closed that same day. Experian reported an aggregate purchase price of US$324 million, including US$14 million in limited two-year earn-out provisions. The acquisition added device intelligence to Experian’s fraud and identity offerings, with the aim of helping clients identify risky online activity without adding unnecessary friction for legitimate customers.

Why did Experian buy 41st Parameter?

Experian’s stated goal was to broaden its fraud-prevention and online-authentication capabilities. The company said 41st Parameter’s technology would complement its existing products, support cross-selling to Experian’s installed customer base and work alongside identity-management products.

The strategic fit was a combination of signals: 41st Parameter helped identify the device involved in an online interaction, while Experian brought identity data and other fraud-detection capabilities. Experian’s 2013 announcement said the combination could help clients complete web transactions “quickly and securely,” reducing fraud losses while authenticating consumers with minimal intrusion.

Damiano Cracolici, then Head of Decision Analytics at Experian India, described the deal as part of the company’s commitment to provide a broad set of fraud-detection and identity-authentication capabilities. 41st Parameter CEO Alan Naumann said the combined team could deliver solutions to their mutual clients around the world.

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How much did Experian pay?

Experian plc reported an aggregate purchase price of US$324 million in 2013. That total included US$14 million in limited earn-out provisions payable over two years. Experian’s financial statements say the transaction closed on 1 October 2013, the date it was announced.

The business also had recurring-revenue characteristics that supported the acquisition case. In information Experian provided in 2013, customer license contracts were typically two to three years, renewal rates exceeded 95%, and revenue had grown at more than 40% compound annually over the preceding two years. Experian expected approximately US$26 million in revenue for calendar 2013, with more than 95% already booked and contracted. These were figures reported in connection with the deal, not a guarantee of later performance.

What did 41st Parameter’s device-identification technology do?

Its patented technology helped a business recognize devices interacting with its website or online service. That device signal could inform risk-based authentication: a business could assess whether an interaction looked risky and decide when additional checks were warranted, rather than treating every customer the same way.

Experian said the approach was intended to help clients reduce fraud losses while minimizing unnecessary customer friction. The technology was relevant to several common online fraud scenarios:

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  • New-account fraud: identifying device-related signals that could help assess risk when someone applies to open an account.
  • Card-not-present transactions: using device identification as one input when evaluating purchases made online without presenting a physical card.
  • Account takeover: helping detect suspicious access to an existing customer account.

Potential customers included financial institutions, ecommerce merchants, online travel businesses and digital-media companies. Device identification was a risk signal, not proof by itself that a user was legitimate or fraudulent; its value came from combining it with other information and authentication decisions.

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What happened to 41st Parameter after the acquisition?

Experian integrated the acquired capability into its Fraud and ID business rather than presenting it as a separate standalone company in its later product descriptions. By 2015, Experian described FraudNet device intelligence as being used alongside Precise ID and Experian identity data. That illustrates the intended integration: device signals could contribute to a broader fraud and identity assessment.

The available company descriptions establish this product integration, but do not establish a detailed timeline for the 41st Parameter corporate entity or the exact point at which its original brand stopped being used.

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