Founded in 2008, Cambridge-headquartered Featurespace counts dozens of major financial institutions - including HSBC and NatWest - among the clients for its machine learning-based fraud detection technology. It has raised around $100 million from investors, including Mike Lynch, the technology entrepreneur who recently died on his yacht.Visa says the acquisition will complement and strengthen its portfolio of fraud detection and risk-scoring solutions, enabling clients to protect the payments ecosystem using AI-fuelled technology.In August, Sky News reported that talks about an acquisition were underway at a £700 million price tag. The deal is slated is closed in 2025, subject to customary closing conditions, including regulatory approval.

Antony Cahill, global head, value-added services, Visa, says: "Featurespace’s strong foundation in AI will enhance our existing product portfolio and enable us to address our clients’ most complex and pressing challenges."

Featurespace’s largest shareholder, IPC Group, expects to receive £134 million total cash for its holding in Featurespace - £119 million received on completion and £15 million subject to deferral.

Greg Smith, chief executive, IP Group, says: “Having supported Featurespace for over ten years, we are delighted with this record exit, which represents an excellent financial return for IP Group."