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ACI and ReD: How the acquisition will benefit ReD customers

On August 12 2014, ACI Worldwide completed its acquisition of ReD. Here Mike Braatz, Senior Vice President, Product Line Manager, Payments Risk Management, ACI Worldwide, talks about the strategic reasons behind the acquisition and the additional benefits it will bring to ReD customers. 

Why did ACI Worldwide decide to acquire ReD?

We acquired ReD for several reasons. Firstly, it enables ACI to get into the rapidly growing market for merchant CNP eCommerce fraud solutions. This is a market predicted to grow at about 20% a year over the next three years and ReD’s solutions for this market segment complement and extend our existing portfolio.

ReD’s employees also have great experience and deep expertise in areas that augment our teams and are complementary to our strategy – experience in areas such as modelling and analytics, business intelligence, fraud/risk analytics and consortium data. ReD brings a strong global customer base of 1,500 retailers, issuers, processors and switch networks.

ACI and ReD together have an unrivaled merchant retail solution – global, omni-channel, integrated fraud management, and very importantly, hosted (SaaS) or on-premise options built on Universal Payments (UP) technology. The acquisition of ReD strengthens ACI’s any-to-any, integrated omni-channel offering. There’s more, but those are the high points. Needless to say, there are multiple strategic reasons behind the acquisition, and I’m very excited to welcome ReD to ACI.

How will ReD solutions fit into the ACI product portfolio?

ReD’s solutions fit well within our overall strategy to provide a complete set of real-time, secure, any-to-any payment services, all enabled by our UP technology. In fact, for many years, ACI has invested in and offered world class fraud detection and prevention solutions, primarily targeted to the financial services market.  The ReD solutions are highly complementary to ACI’s, and offer opportunities to enhance our offerings in both our Merchant and Payments Risk Management solution areas.

Tell us more about ACI’s UP strategy and how this benefits customers?

ACI Universal Payments – UP – is ACI’s strategy to deliver the industry’s broadest, most unified, end-to-end enterprise payment solutions. With ACI’s comprehensive UP approach, customers can accelerate time to market, reduce risk, grow revenues and increase operational efficiencies.

Our UP Framework is the innovative technology that brings the strategy to life. It’s at the core of ACI’s strategy to enable end-to-end enterprise payments. It is a set of technologies and frameworks that provides purpose-built payments functionality to orchestrate all aspects of payments processing for any payment type, any channel, any currency and any network.

With UP, customers can:

  • Expedite the development of connections to networks, devices and systems
  • Accelerate time to market when addressing new market initiatives and regulations
  • Enable new combinations of services to allow innovative payments processing
  • Leverage existing payments infrastructure with a modern SOA-based approach
  • Eliminate processing silos to reduce costs and increase efficiency


What benefits does the acquisition create for ReD customers?

ReD customers will have access to the broader solutions portfolio enabled by the merging of ACI and ReD. Together we will deliver an unrivaled global, omni-channel merchant retail solution, with integrated fraud management built on ACI’s UP technology. It will guarantee a consistent, unified customer experience in any retailer modality (in-store, mobile, online, on premise solution or hosted), and is a key part of our real-time commerce, any-to-any transaction strategy.

ReD customers will benefit from a comprehensive fraud offering, knowledgeable delivery team and broader market presence. ACI has the size and scale to support current and future initiatives. ACI brings to ReD customers a strong set of complementary products, greater reach, significant annual investment in R&D and, most importantly, UP technology, which no other payments risk management vendor can offer. ReD’s hosting capabilities are strengthened by ACI’s world-class hosting organization and ACI’s global support team is renowned for delivering the 24x7x365 support essential in the payments market.

ACI and ReD each bring to the other important technologies and intellectual property that, when brought together, can create much more value for our customers than we could alone. In particular, there is a large opportunity to combine merchant and financial institution data and use that as a basis for improved fraud detection and business intelligence. This is where we can make “big data” and analytics a real value proposition for our customers, leveraging the combined data and technology assets of our two companies.

What are the plans to integrate ReD into ACI – over what time period?

The integration is already well under way and is being managed by a cross-functional team. Our focus is on integrating ReD as quickly as we can while ensuring we meet our existing business objectives and, very importantly, our commitments to customers.

Will there be changes in service levels or contracts for ReD customers?

As ACI evolves and builds on the high-quality products that our customers rely on, we assure you that we intend to maintain ReD customers’ existing contracted services. A basic tenet of ACI’s long-standing lifecycle management policy is that we do not “end-of-life” products which are mission critical for our customers and we will continue to maintain multi-year roadmaps and contractual commitments. Consistent with our approach across all of our product lines, ACI will complement, support and enable our customers as part of our UP strategy. We look forward to the opportunity to brief you on our product roadmaps in the coming months as we bring our teams together.

For further information about the acquisition, please contact your Account Manager