Investcorp said April 19 that it has agreed to sell CSIdentity to Experian for $360 million. Austin-based CSID provides enterprise level identity theft protection technology solutions to businesses and government agencies. Jefferies LLC advised CSID while Winstead PC served as its legal advisor.
Investcorp announces the sale of CSID for $360 million
· Transaction marks Investcorp’s fifth successful exit in last six months globally
· Reinforces Investcorp’s track record of building leading IT and cybersecurity companies
· Fifth exit from Investcorp Technology Partners III
Investcorp, a global provider and manager of alternative investment products, today announces it has agreed the sale of CSIdentity (“CSID”) to Experian (LSE: EXPN), a global information services company, for an enterprise value of $360 million. The transaction is subject to standard regulatory approvals.
Founded in 2006 and headquartered in Austin, Texas, CSID is a market leading provider of enterprise level identity theft protection technology solutions to businesses and government agencies. The Company’s solutions, provided on the basis of a recurring software-as-a-service (“SaaS”) business model, proactively detect credit and non-credit related identity theft, notify affected parties and help restore compromised identities.
Through its technology fund, Investcorp Technology Partners III, Investcorp initially invested in CSID in December 2009 and the fund is today the majority owner of the Company. Since Investcorp partnered with CSID, the Company has experienced rapid growth and has become a global leader in the identity protection market.
Hazem Ben-Gacem, Head of Corporate Investment Europe at Investcorp, said: “Cybersecurity is a trend that has long been on Investcorp’s radar and over the last decade we have established a market leading position in the sector, investing in six IT security companies. This successful exit, and the fact that the Company has attracted the interest of such a strong trade buyer, is further testament to our ability to create global leaders in the cybersecurity sector. It also marks an exceptionally active period for Investcorp’s Corporate Investment team, which has now executed five exits over the last six months, demonstrating our ability to return significant amounts of invested capital despite the fact we are currently operating in a period of tumultuous market conditions.”
This transaction marks the fifth exit for Investcorp Technology Partners III, following the sale of TDX Group to Equifax Inc; the partial exit of Fishnet through a merger with Accuvant; the ultimate full sale of Skrill Group to Optimal Payments (now renamed Paysafe Group plc); and the flotation of Sophos Group plc on the London Stock Exchange.
Jefferies LLC is serving as exclusive financial advisor to CSID and Winstead PC is serving as its legal advisor.