MasterCard to acquire Applied Predictive Technologies in £388m deal

APT founder Jim Manzi told Computing that predictive analytics helped firms to get 'about three per cent better at guessing' what a consumer would buy

MasterCard has entered into an agreement to acquire big data analytics firm Applied Predictive Technologies (APT) for $600m (£388m).

APT's customers include the likes of Boots, Asda, clothes firm Abercrombie & Fitch and McDonald's. Its software tracks customer habits in an attempt to help retailers, banks and other organisations to predict future outcomes and alter their strategies accordingly.

Back in 2013, the founder of the company, Jim Manzi, told Computing that predictive analytics helped firms to get "about three per cent better at guessing" what a consumer would like to buy. In the same year, the firm received a $100m minority investment from the merchant banking division of Goldman Sachs, in a deal that APT described at the time as the largest investment in predictive analytics to date.

APT's CEO, Anthony Bruce, told Computing that his company's tools could be used by firms to target their campaigns in the right areas and at the right people.

"Then, they can look at what elements of the action makes it most successful, so they can modify what it is they're doing to maximise action," he said.

"This process and discipline of test and learn, when supported by an enterprise model, can drive tens of billions of dollars in value," he added.

MasterCard said that the acquisition of APT would advance its own strategy to deliver differentiated services to merchants, and it would complement its recent acquisition of London-based retail consulting and analytics firm 50ne.

As part of the company's services portfolio, APT will now have access to MasterCard's analytics suite, consulting capabilities and marketing services.

"APT's world-class talent, technology and Test & Learn platform, matched with MasterCard's analytics, will give our customers the advantage of enhanced and actionable decision-making," said Kevin Stanton, president of MasterCard Advisors, the professional services arm of MasterCard.

APT's Bruce said that the deal would allow APT to "help us expand our business, working with even more clients around the globe and evolving our product capabilities".

The transaction is expected to close in the second quarter of 2015, subject to a number of conditions.