Palamon Capital Partners is selling UK-based payment fraud prevention outfit Retail Decisions (“ReD”) to ACI Worldwide for $205 million. The deal is subject to regulatory approvals.

Palamon acquired ReD in a take-private in December 2006 alongside co‑investors, Morgan Stanley Alternative Investment Partners and AlpInvest. Fabio Massimo Giuseppetti, partner at Palamon, comments: “As the largest investment in the Palamon II portfolio, ReD has been a highly successful result for use. Having de-levered the business and returned most of our invested capital through the early divisional divestments, we were able to focus on the “jewel in the crown”; the global fraud prevention business. We successfully delivered on our investment thesis by backing a highly scalable SaaS business model with transaction-based revenue and we are delighted with the results achieved.”

Paul Stanley, CEO at ReD, says: “We have thoroughly enjoyed working with Palamon and are proud of the results we have achieved together. Their understanding of the e-commerce space combined with their experience in payments and enterprise software was invaluable in establishing ReD as a global leader in fraud prevention. Significant investments in new products and sales channels have further strengthened our global platform and we are well placed to continue delivering strong growth. We look forward to working with ACI Worldwide in the next phase of our development.”

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