Global private equity firm Permira, through its Permira Growth Opportunities II fund, has reached an agreement to acquire a majority stake in BioCatch, a leader in digital fraud detection and financial crime prevention. The transaction involves purchasing shares primarily from Bain Capital Tech Opportunities and Maverick Ventures. Alongside this deal, existing shareholders Macquarie Capital and Sapphire Ventures are increasing their investments in BioCatch, bringing the company’s enterprise valuation to $1.3 billion.
Founded in 2011 and headquartered in Tel Aviv, BioCatch leverages artificial intelligence and machine learning to deliver behavioral biometric intelligence. This advanced technology helps financial institutions differentiate between genuine users and fraudsters. BioCatch’s capabilities include detecting bot attacks and, more recently, behavior-based mule account detection, making it a vital tool for over 100 financial institutions worldwide, including 30 of the largest banks.
BioCatch has raised over $200 million to date, supporting its mission to enhance financial crime prevention and digital intelligence sharing. Last year, Permira became BioCatch’s third major shareholder after acquiring a significant minority share, joining Bain Capital Tech Opportunities and Maverick Ventures. This new agreement solidifies Permira’s position as the majority shareholder, signaling strong confidence in BioCatch’s growth potential and strategic direction.
Permira Growth Opportunities partner and co-head Stefan Dziarski expressed enthusiasm about the partnership with BioCatch’s CEO Gadi Mazor and his team. He emphasized the commitment to accelerating the company’s growth and expansion in the coming years. With this strategic investment, BioCatch is poised to further enhance its innovative solutions and expand its footprint in the financial sector, continuing to safeguard against the ever-evolving landscape of digital fraud and financial crime.
