Investcorp has agreed the sale of CSIdentity (CSID) to Experian (EXPN), a global information services company, for an enterprise value of approximately USD360 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 consumers, 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 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. At the time of acquisition CSID generated revenues of approximately USD12 million and EBIDTA of USD4 million. Today, CSID employs close to 200 people and for the year ending 31 December 2015, generated revenues of over USD125 million and EBIDTA of more than USD35 million.
Hazem Ben-Gacem, Head of Corporate Investment Europe at Investcorp, says: "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.”
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 sale of Skrill Group to Optimal Payment Ltd; and the flotation of Sophos on the London Stock Exchange.
