U.K-based private equity titan Permira has escalated its investment in digital fraud detection leader BioCatch, securing a majority stake in a recent transaction. This move, featuring a buyout of shares from previous investors such as Bain Capital, Maverick Ventures, and Tech Opportunities, catapults BioCatch to an impressive valuation of $1.3 billion.
While the exact figures remain undisclosed, it’s known that current investors Sapphire Ventures and Macquarie Capital have also bolstered their investments in the firm. Permira’s ramp-up in ownership follows its acquisition of a significant minority interest in BioCatch the previous year, a deal that initially propelled the company past the billion-dollar valuation threshold.
This acquisition underscores a burgeoning interest in cybersecurity equity deals, reminiscent of Thoma Bravo’s recent announcement to purchase Darktrace for $5 billion. BioCatch, established in 2011 and headquartered in Tel Aviv, specializes in detecting online fraud by monitoring user behavior to distinguish legitimate customers from imposters or automated bots.
To date, BioCatch has amassed over $200 million in funding, with contributions from heavyweight financial institutions like American Express, HSBC, Barclays, Citi, and National Australia Bank. Permira’s commitment to BioCatch is among its most notable investments, following substantial transactions such as the $10.2 billion takeover of Zendesk and the $5.8 billion acquisition of Mimecast.
With its newly minted majority stake, Permira plans to inject a growth-oriented strategy into BioCatch, aiming to broaden the company’s European footprint. Stefan Dziarski, a partner at Permira Growth Opportunities, expressed long-standing enthusiasm for BioCatch’s market potential and technology leadership, which has only intensified since Permira’s initial investment.
