PayPal is acquiring Simility, a fraud prevention and risk management platform, for a purchase price of $120 million in cash, subject to certain adjustments.

PayPal said the acquisition will enhance its ability to deliver fraud prevention and risk management solutions to merchants globally, according to a press release. 

"Digital commerce has exploded, and fraudsters have taken note, adapting and developing new methods to carry out their crimes," Bill Ready, PayPal's COO said in the release. "PayPal has been at the forefront of developing innovative fraud prevention and risk management solutions for nearly 20 years, and now, merchants will be able to configure those solutions to manage the unique complexities of their businesses."

Following the close of the transaction, merchants on the PayPal platform will gain access to Simility's fraud tools that can be customized to reflect the nuances of their businesses through their existing account management dashboard. These machine learning-powered tools, which dynamically adapt and evolve with each transaction, will enhance payment experiences for merchants and their customers by helping to reduce fraudulent payment activity and, in some cases, verifying transactions that may have otherwise failed, according to the release.

Subject to customary closing conditions, this transaction is expected to close in the third quarter of 2018.