Permira Acquires Majority Stake in BioCatch Now Valued at US$1.3 Billion

Permira Acquires Majority Stake in BioCatch Now Valued at US$1.3 Billion

BioCatch, a digital fraud detection solution provider, announced that Permira Growth Opportunities II, a fund managed by global private equity firm Permira, will acquire a majority stake in the company. Financial terms of the deal was not disclosed.

This agreement also sees increased investments from existing shareholders Sapphire Ventures and Macquarie Capital, aiming to bolster BioCatch’s global presence and product development.

The transaction, which involves Permira buying out major shares from Bain Capital Tech Opportunities and Maverick Ventures, values BioCatch at approximately US$1.3 billion.

This change comes as BioCatch continues to evolve its capabilities in fraud prevention, having extended its focus in 2023 to include behavior-based detection of financial crimes.

Founded in 2011, BioCatch offers advanced fraud detection that utilises AI, data science, and machine learning to assess and secure online transactions.

The company serves a substantial customer base, counting more than 190 financial institutions globally, including over 30 of the world’s largest 100 banks.

The company has reported robust growth, concluding 2023 with a 49% increase in annual recurring revenue, surpassing US$100 million, and achieving profitability.

With this new investment, Permira aims to further extend BioCatch’s reach, particularly in Continental Europe, leveraging its longstanding presence in the region.

Stefan Dziarski

Stefan Dziarski

Stefan Dziarski, Partner and Co-Head of Permira Growth Opportunities said,

“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

Gadi Mazor

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.”

 

Featured image credit: Gadi Mazor, CEO of BioCatch and Stefan Dziarski, Partner and Co-Head of Permira Growth Opportunities