Fair Isaac to Buy Rival HNC Software
Software company Fair, Isaac & Co. said it would buy smaller rival HNC Software Inc. for more than $700 million, strengthening business in analytical products including credit card fraud detection.
HNC, based in San Diego, develops software that predicts patterns of human behavior from databases that track transaction histories.
Some of its major customers include financial institutions such as JP Morgan Chase, telephone companies including AT&T; Corp. and retailers such as Wal-Mart Stores Inc. and Sears, Roebuck & Co.
In an all-share transaction, Fair Isaac is paying about $706 million for HNC, based on the current price of its shares on the New York Stock Exchange where it closed down 10.3% at $57.50. HNC’s shares finished up $2.08, or nearly 12%, at $19.52 on Nasdaq.
HNC and Fair Isaac share some major customers, although catering to different parts of their clients’ businesses.
But the overlap would help Fair Isaac to save annual costs of about $35 million, its chief executive, Tom Grudnowski, said.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
