Permira to acquire majority stake in BioCatch

The transaction builds on Permira’s initial minority investment made in early 2023.
Permira to acquire majority stake in BioCatch

Digital fraud detection and financial crime prevention startup Biocatch has announced that Permira Growth Opportunities II, a fund advised by London-based private equity firm Permira, has agreed to acquire a majority position in the Company.

Biocatch uses biometric behavioural data and advanced machine learning in its attempts to classify actions as potentially fraudulent such as detecting ongoing calls, identifying atypical mouse movements or hesitation and monitoring suspicious mobile device actions. In 2023, the company expanded its mission to include a proactive approach to fighting financial crime with the launch of predictive, behavior-based mule account detection.

Under the terms of the agreement, the Fund will acquire a majority stake in the Company, buying out shares primarily from Bain Capital Tech Opportunities and Maverick Ventures, in a secondary transaction valuing BioCatch at a total enterprise valuation of $1.3bn. Alongside the Fund’s investment, existing shareholders Sapphire Ventures and Macquarie Capital will also increase their investments in BioCatch.

 Permira, via its growth equity strategy, completed an initial minority investment in the Company in early 2023, a year that BioCatch ultimately finished with 49% ARR growth, whilst also surpassing the $100 million ARR milestone and attaining EBITDA profitability. Today, BioCatch counts more than 190 financial institutions as customers globally, including over 30 of the world’s largest 100 global banks

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

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