BioCatch, a leader in behavioral biometric intelligence, has announced a new majority stakeholder. Permira Growth Opportunities II, advised by the global private equity firm Permira, is set to acquire a majority position in BioCatch. This strategic acquisition, valued at $1.3 billion, is poised to fuel the company’s global expansion and enhance its product innovations.
Founded in 2011, BioCatch has been at the forefront of the shift from traditional banking to online platforms, offering advanced fraud detection solutions. The company’s patented AI, data science, and machine learning technologies provide precise insights into user behavior, aiding in the prevention of financial crime.
The investment by Permira, which follows a year of 49% ARR growth and the achievement of EBITDA profitability for BioCatch, marks a commitment to the company’s continued momentum. With over 190 financial institutions, including 30 of the top 100 global banks as clients, BioCatch is set to leverage Permira’s network for expansion, particularly in Continental Europe.
The deal will see existing shareholders Sapphire Ventures and Macquarie Capital increase their investments, while shares from Bain Capital Tech Opportunities and Maverick Ventures will be bought out. Permira’s backing is expected to strengthen BioCatch’s market leadership and support its mission to combat financial crime proactively.
Stefan Dziarski, Partner and Co-Head of Permira Growth Opportunities, said, “Permira has backed the theme of cybersecurity for several years, and within this, online fraud detection, customer identity and access management markets have become a clear focus.
We have tracked BioCatch with enthusiasm for many years, and now having been a shareholder since early 2023, our conviction in the business, its growth potential, its technology leadership, and its management team continues to grow. We’re excited to become the company’s majority shareholder and look forward to a continued successful partnership with Gadi and the BioCatch team as we seek to further accelerate growth and expansion in the years to come.”
Gadi Mazor, CEO of BioCatch, added: “After building a strong partnership with Permira over the last year, we are delighted to welcome them as majority shareholders. The firm’s impressive experience within technology and cybersecurity, combined with their scale, global network, and our close working relationship, has been invaluable since their initial investment. We’re excited to take BioCatch to the next level together. I’d also like to thank Matthew Kinsella from Maverick Ventures and Dewey Awad from Bain Capital for their support over the last four years, which has been key in helping us establish our leadership position in the market.”
Dewey Awad, a Partner at Bain Capital, said, “We have had the privilege of partnering with BioCatch over the past four years and worked closely with Gadi and the BioCatch team to develop a long-term strategy to realize the business’s growth potential.”
“Together, we drove several key initiatives aimed at augmenting BioCatch’s go-to-market strategy, team, and operations, all with the goal of protecting end-users and their most sensitive transactions. We believe the company is well-positioned to continue its growth journey under Gadi’s leadership and with Permira’s support.”
Ran Maidan, Senior Adviser and Head of Permira in Israel, commented, “At Permira, we are looking to back product-led businesses operating in structurally growing end markets and that have management teams with the ambition to scale and grow their business. We found all of that in BioCatch and were grateful to have the opportunity to make an initial investment in 2023. After a successful first year, we are delighted to take a majority stake in the business as it continues to grow at scale. With the full extent of Permira’s resources and experience at its disposal, we’re excited for what’s to come at BioCatch.”
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