Permira Acquires Majority Stake in BioCatch in $1.3 Billion Deal

Permira Acquires Majority Stake in BioCatch in $1.3 Billion Deal

In a major move in the cybersecurity space, U.K.-based private equity firm Permira has acquired a majority stake in digital fraud detection company BioCatch in a deal valued at $1.3 billion. The transaction involved acquiring shares primarily from existing investors, including Bain Capital, Maverick Ventures, and Tech Opportunities.

This marks Permira’s second notable private equity deal in the cybersecurity sector in less than a week, following Thoma Bravo’s announcement of acquiring Darktrace in a $5 billion deal. Last year, Permira acquired a significant minority stake in BioCatch, making it the company’s third-largest shareholder.

Founded in 2011, BioCatch, based in Tel Aviv, develops technology that helps companies track users’ online behavior to detect fraudsters. The company has raised over $200 million to date, with investments from financial giants like American Express, HSBC, and Barclays.

Permira plans to leverage its investment and majority stake to bring a growth mindset to BioCatch and expand its presence across Europe. Stefan Dziarski, partner and co-head at Permira Growth Opportunities, expressed confidence in BioCatch’s business, technology leadership, and management team.

This acquisition is one of Permira’s biggest in recent years, following its take-private deals with companies like Zendesk and Mimecast. The firm’s focus on cybersecurity and online fraud detection aligns with BioCatch’s mission, making it a strategic partnership for both parties.