12:30 PM EDT, 09/23/2024 (MT Newswires) -- Visa's (V) potential acquisition of Featurespace could be a "meaningful addition" to the company's fraud and risk capabilities as it plans to expand its value-added services businesses, RBC Capital Markets said in a Friday note.

Featurespace offers the ARIC Risk Hub, a platform that leverages customer behavior insights in reducing fraud and financial crime. According to the note, Sky News reported that Visa could announce its acquisition of Featurespace soon with a deal value of 730 million pounds ($974 million).

RBC said acquiring Featurespace will boost Visa's machine learning capabilities and allow the company to use adaptive behavioral analytics in improving risk score certainty across all transactions.

The investment firm also said Featurespace's Risk Hub has "several applications across the finance ecosystem," potentially enabling Visa to offer unique fraud capabilities.

RBC Capital Markets has an outperform rating on Visa, with a $311 price target.

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