Global payments network Visa has entered into an agreement to acquire BioCatch, an Israeli firm specializing in digital fraud mitigation, in an all-cash transaction valued at $2.4 billion, Calcalist reported on Monday. The buyout follows two years after private equity fund Permira secured a controlling interest in the enterprise at a valuation of roughly $1.3 billion.
Founded in 2011 by Avi Turgeman alongside the late Benny Rosenbaum, BioCatch faced severe headwinds in 2015 when CEO Rosenbaum passed away, leaving the firm without a chief executive for 18 months. Current CEO Gadi Mazor initially joined as head of local operations and chief product officer before being elevated to lead the full company in 2021, while co-founder Turgeman maintained the CTO post until exiting after selling a major portion of his stake to Bain Capital in 2019.
The enterprise witnessed rapid expansion following Mazor’s arrival in senior management in 2018. At that stage, BioCatch recorded $7 million in annual revenue on a $100 million valuation. Driven by a 49% growth rate in 2023, the organization’s annual recurring revenue reached $100 million.
BioCatch’s platform leverages artificial intelligence and machine learning to evaluate behavioral biometrics, preventing threats such as account compromises, application fraud, money laundering schemes, and scams. By examining thousands of indicators spanning device usage, network metrics, user interactions, typing speed, and touch gestures, its software separates authorized account holders from bad actors in real time.
Visa noted that the integration will enhance its suite of risk management, cybersecurity, identity, and threat prevention products by enabling client institutions to intercept attacks prior to transaction execution. Currently, BioCatch safeguards 1.8 billion devices and 760 million individuals across the globe, supplying security tools to over 350 banking clients in 21 countries - including more than 100 major international financial institutions.
The payment giant highlighted that fraudulent activities and account takeovers inflict over $1 trillion in annual losses on the global economy, with AI tools accelerating the scale and complexity of these threats. To protect its network ecosystem, Visa has directed over $13 billion into tech infrastructure and security upgrades over the past five years.
The sale yields a swift return for Permira, which took a 60% controlling stake in BioCatch for approximately $750 million in a transaction spearheaded by Israeli partner Ran Maidan two years prior. The buyout will absorb equity held by Permira funds as well as other shareholders.
Pending necessary regulatory approvals, the acquisition is targeted to close by the end of Visa’s fiscal second quarter of 2027. Mazor is expected to remain at the helm, with core business operations proceeding without structural disruption.