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Visa buys CyberSource for e-commerce security

The credit card company is ponying up $2 billion for CyberSource, whose offerings include fraud detection capabilities.

Larry Dignan

Visa said Wednesday that it will acquire CyberSource, which provides electronic payment and e-commerce security software, for $2 billion.

The CyberSource price tag works out to $26 a share. CyberSource closed at $19.44 on Tuesday. The e-commerce security player has more than 295,000 merchants in its network (CyberSource and Authorize.net).

Visa said it will take CyberSource's products and services and sell them throughout its network, improve its fraud detection capabilities, and grow the customer base. CyberSource CEO Michael Walsh will continue to run the company as a part of Visa.

This story, under the headline "Visa beefs up its e-commerce security, fraud system with CyberSource acquisition," was originally published at ZDNet's Between the Lines.