Visa Acquires Israeli Cybersecurity Firm BioCatch for $2.4 Billion After Rapid Growth

Visa has agreed to purchase the Israeli cybersecurity company BioCatch for $2.4 billion, marking a significant return for investment firm Permira just two years after acquiring majority control. Founded in 2011 by Avi Turgeman and the late Benny Rosenbaum, BioCatch specializes in behavioral biometrics technology that detects and prevents fraud in banking systems by analyzing digital behavior patterns such as typing speed and mouse usage.

Under CEO Gadi Mazor, appointed in 2018, BioCatch's revenues surged from approximately $7 million and a valuation of $100 million to an annual revenue run rate of $100 million in 2023, reflecting 49% growth that year. The company currently serves over 350 banking clients across 21 countries. Visa's acquisition aims to enhance its cybersecurity, risk management, and fraud prevention capabilities. The deal is expected to close in Visa's second fiscal quarter.

Permira initially bought 60% of BioCatch in 2023 for $750 million, making this sale a rapid and lucrative exit. CEO Gadi Mazor stated the acquisition will not significantly change BioCatch's operations and that he intends to remain in his role. He highlighted Visa's global reach, operating in 200 countries with 14,500 financial institutions, as a major growth opportunity for BioCatch.