Fair Isaac Corporation, a provider of analytics and decision technology, announced that it will acquire NAREX Inc., a leader in analytic solutions for collections and recovery, in a $10 million cash transaction. The Golden, Colorado-based firm will become a new operating unit within Fair Isaac's Global Account Management Solutions division.

Fair Isaac and NAREX share a commitment to delivering leading-edge customer strategy and decision management analytics, and the acquisition extends the reach of Fair Isaac's account management solutions across the entire credit customer lifecycle. Industry-standard Fair Isaac offerings such as the FICO score and TRIAD adaptive control system enable businesses to leverage advanced analytics to target customers, book new accounts, establish credit lines and manage early stage collections. NAREX's solutions and expertise give Fair Isaac the added ability to drive businesses' late-stage collection and recovery strategies.

Each stage of the credit customer account management life cycle requires a unique analytic approach to ensure the most effective decisions are made for each account. Measuring risk and assessing the monetary potential of late- stage collection and recovery accounts require data sources and techniques designed to assess the potential of accounts once they reach “bad” or “charged off” status. Much like Fair Isaac does to support account originations and credit line management, NAREX applies custom, proprietary analytic models to evaluate a credit customer's potential for repaying a debt, how much the customer is likely to pay and when, and what types of communication and levels of collection effort are most likely to elicit a favorable response.

The NAREX operation will continue to operate from its Colorado location under the Fair Isaac name.

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