Permira's Majority Stake Acquisition Propels BioCatch to $1.3 Billion Valuation

BioCatch, the global frontrunner in digital fraud detection and financial crime prevention, announced today a significant development in its ownership structure. Permira Growth Opportunities II, managed by the renowned private equity firm Permira, has agreed to acquire a majority share in BioCatch, marking a pivotal moment in the company's trajectory.

This acquisition, alongside increased investments from existing stakeholders Sapphire Ventures and Macquarie Capital, signifies a strategic move aimed at catapulting BioCatch's global expansion efforts, driving innovation in its product offerings, and fostering sustained growth.

Under the terms of the agreement, Permira will secure a majority stake in BioCatch, primarily purchasing shares from Bain Capital Tech Opportunities and Maverick Ventures, in a secondary transaction valuing the company at an impressive total enterprise valuation of $1.3 billion.

Established in 2011 amidst a shifting landscape towards online banking, BioCatch has continually championed the cause of combating fraud while preserving user experience. Leveraging patented artificial intelligence and machine learning technology, BioCatch specializes in behavioral biometric intelligence and advanced fraud detection. Their recent foray into predictive, behavior-based mule account detection underscores the company's commitment to staying ahead of evolving threats in the digital domain.

The strategic investment from Permira comes on the heels of BioCatch's remarkable performance, with 49% ARR growth in 2023 and achieving EBITDA profitability. Presently, BioCatch boasts a clientele of over 190 financial institutions globally, including 30 of the world's largest banks, utilizing its solutions to fortify defenses against fraud and enhance decision intelligence.

Stefan Dziarski, Partner and Co-Head of Permira Growth Opportunities, expressed enthusiasm about the acquisition, citing BioCatch's technological prowess and growth potential as key drivers for investment. "We're excited to become the company's majority shareholder and look forward to a continued successful partnership with Gadi and the BioCatch team," said Dziarski.

Gadi Mazor, CEO of BioCatch, echoed the sentiment, emphasizing Permira's instrumental role in BioCatch's journey thus far and expressing optimism about the future prospects of the partnership.

The transaction not only marks a significant milestone for BioCatch but also underscores Permira's commitment to backing high-growth enterprises operating in thriving sectors. With Permira's extensive resources and expertise at its disposal, BioCatch is poised to embark on its next phase of expansion with renewed vigor and determination.