Cork entrepreneur Pat Phelan has sold his e-commerce ID and fraud protection startup Trustev in a €40m deal with Chicago-based credit report provider TransUnion. TransUnion paid €19m upfront, with a further €21m promised if Trustev hits various fiscal targets through 2018.

Trustev developed a software platform for online retailers that allows online identity verification in real time. It works by collating available data about a transaction, how a user is interacting with a site, what sort of device they’re using and combines all the data to create a social fingerprint. The firm was founded by Phelan and Chris Kennedy in 2012 and the two remained the majority shareholders of the business.

Pat Phelan left school early to train as a butcher and chef and has spoken candidly about his previous battles with alcoholism up to and during the 1990s. When he cleaned up his act, he pursued entrepreneurship instead, securing a string of successes over the last 15 years.

Phelan founded and sold internet-of-things company Cubic Telecom, initially a mobile roaming service. He invested the sale's proceeds in Trustev, along with PCH CEO Liam Casey and tech entrepreneur and investor David Collier. Other backers included Mangrove and Greycroft.

Fraud Management

TransUnion had been working with Trustev prior to the acquisition and was also an investor in firm. It said that it will integrate Trustev into its fraud management solutions business.

In Association with

"As fraud grows in volume and sophistication, TransUnion continues to invest in building our global capabilities to help companies manage their risk," said Jim Peck, TransUnion's president and CEO. "Holistic information is a powerful tool to help our customers approve good transactions and prevent fraud, and Trustev's innovative capabilities are at the forefront of technology in this increasingly critical field."

The founders retained 87% of the equity through the fund-raising, so they’ll do well from the TransUnion transaction. Phelan has also won armfuls of business awards in 15 years of post-alcoholic sobriety. Speaking about the Trustev sale, he mused: “We have come a long way on our own, since we started as two guys, co-located in a Cork nail salon, but the fastest way to complete the mission is by teaming up with a larger company.”