VC firm takes majority stake in BioCatch at $1.3B valuation

A private equity firm has struck a deal to take majority ownership of behavioral biometrics and fraud prevention business BioCatch, at a valuation of $1.3 billion.

Permira Growth Opportunities is acquiring the shares mainly from Bain Capital and Maverick Ventures. Sapphire Ventures and Macquarie Capital, each existing BioCatch backers, are also increasing their investments in the company.

The secondary transaction is expected to speed up the global expansion of BioCatch’s behavioral biometrics and fraud protection technologies, back product innovation and support overall growth, according to the announcement. Permira has access to a large network across Continental Europe, which could boost BioCatch’s expansion prospects in the region. Permira’s announcement also mentions interest in backing organic and inorganic company growth, hinting at the possibility of a future acquisition.

BioCatch serves more than 190 financial institutions globally, including 30 of the 100 largest banks, and claims to have saved customers more than $3.5 billion over the years.

“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,” states Permira Growth Opportunities Partner and Co-head Stefan Dziarski. “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.”

BioCatch reports 49 percent growth in annual recurring revenue in 2023, to over $100 million, and reached EBIDTA profitability.

Article Topics

behavioral biometrics  |  BioCatch  |  biometrics  |  investment