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Investcorp acquires equity stake in identity theft protection firm

Investcorp Technology Partners, the technology private equity arm of alternative investment manager Investcorp, has agreed to acquire an equity stake in CSIdentity, a Texas-based provider of identity theft and fraud protection services. 

CSIdentity was started by entrepreneur and co-founder Bill Morrow. Investcorp’s Fund III has made an initial investment of USD35m in the company.

CSIdentity provides proprietary software solutions and datasets for the USD2.8bn identity theft protection market in the US. The market is expected to grow over 20 per cent per year for the foreseeable future, driven by the mass-market adoption of the internet, e-commerce, online banking and other forms of e-payments.

"Our market leading technology solutions are protecting multi-billion dollar corporations, government agencies, small businesses and consumers from identity theft across every US state," says Morrow. "Our partnership with Investcorp not only validates our position as the technology leader, but fuels our growth trajectory as we further penetrate the US market and expand globally, leveraging Investcorp’s presence and relationships around the world."

"Identity theft is the fastest growing crime in the world, having claimed more than ten million victims in the US alone in 2008," adds Alex Guira, co-head of Investcorp’s technology investment business, who will join the CSIdentity board along with London-based Investcorp colleague Dirk Schmücking. "With its technology leadership, blue-chip client base and superb management, CSIdentity is well positioned to combat this growing pandemic, not just in the US but in Europe and the Middle East as well. CSIdentity is a perfect addition to our existing top-notch portfolio of security software and data analytics companies."

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