Digital fraud detection company BioCatch has a new majority shareholder: UK-based private equity firm Permira is acquiring shares in the company “primarily” from existing investors such as Bain Capital, Maverick Ventures and Tech Opportunities in a secondary market transaction that adds value to BioCatch at 1 .3 billion US dollars.
Existing shareholders Sapphire Ventures and Macquarie Capital are also increasing their stake in BioCatch, but the companies did not disclose the amount. Permira also refused to confirm how large its controlling stake in BioCatch is.
This is the second notable private equity deal announced in the cybersecurity space in less than a week. Thoma Bravo announced last Friday that it plans to acquire Darktrace in a $5 billion deal that will take the British cybersecurity company private.
Permira acquired a “significant minority stake” in BioCatch last year in a similar secondary market deal with existing investors, becoming the company’s third-largest shareholder after Bain and Maverick. BioCatch reportedly surpassed the $1 billion valuation mark at the time, meaning investors have since increased their valuation of the Israeli cybersecurity company.
Tel Aviv-based BioCatch, founded in 2011, develops technology that helps companies such as banks track users’ online behavior to determine whether a customer is a real customer or a scammer. For example, this can help identify bots attempting to gain access to online bank accounts using strategies such as credential stuffing.
The company has raised well over $200 million to date, including tranches from financial giants such as American Express, HSBC, Barclays, Citi and National Australia Bank.
This latest deal represents Permira’s largest known transaction since email security company Mimecast was taken private for $5.8 billion just over two years ago. Permira says it will use its investment and position as majority shareholder to bring a “growth mindset” to BioCatch, with plans for further expansion across Europe.
“Permira has been committed to cybersecurity for several years, and the online fraud detection, customer identity and access management markets have become a clear focus,” said Stefan Dziarski, partner and co-head of Permira Growth Opportunities, in a press release. “We have followed BioCatch enthusiastically for many years, and as we have been shareholders since early 2023, our belief in the company, its growth potential, its technology leadership and its management team continues to grow.”