Portico Capital Advises CSIdentity on Investment From Investcorp Technology Partners

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Portico Capital Securities announced today that it served as the exclusive financial adviser to Austin-based CSIdentity on its $35 million investment from Investcorp Technology Partners. “It was a pleasure to work closely with CSIdentity and their senior management team on this pivotal transaction for the company,” said S. Searcy Dryden, Managing Director at Portico Capital. “Identity management – whether ID theft protection or ID verification — is increasingly important for both individuals and corporations. CSIdentity has quickly become a leader in this large and rapidly growing market. With Investcorp as a partner, the company will continue to innovate and bring additional products and services to the market.”

Below are more details from the Company’s press release:

AUSTIN, Texas, January 14/PRNewswire-FirstCall/ — Investcorp Technology Partners, the technology private equity arm of alternative investment manager Investcorp, announced today that its Fund III has agreed to acquire an equity stake in CSIdentity, the Austin, Texas-based technology leader in identity theft and fraud protection services. CSIdentity was started by entrepreneur and co-founder Bill Morrow. The Fund has made an initial investment of $35 million in the company.

CSIdentity provides proprietary software solutions and datasets for the $2.8 billion identity theft protection market in the United States. The market is expected to grow over 20% 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. An estimated 285 million records of personal information held by government and private sector data banks have been breached since 2008, largely at the hands of computer hackers.

“Our market leading technology solutions are protecting multi-billion dollar corporations, government agencies, small businesses and consumers from identity theft across every U.S. state,” CSIdentity CEO Bill Morrow said. “Our partnership with Investcorp not only validates our position as the technology leader, but fuels our growth trajectory as we further penetrate the U.S. 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 10 million victims in the U.S. alone in 2008,” said Alex Guira, co-head of Investcorp’s technology investment business, who will join the CSIdentity board along with London-based Investcorp colleague Dirk Schmucking. “With its technology leadership, blue-chip client base and superb management, CSIdentity is well positioned to combat this growing pandemic, not just in the U.S. 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.”

Approximately 34 million subscribers in the U.S. currently use some form of credit monitoring or advanced identity theft protection services and this is expected to increase over the next few years. CSIdentity leads the industry with advanced Internet surveillance techniques, unrivaled product architecture and the most comprehensive security protection products, including CyberAgent online black market screening in addition to monitoring of payday loans, public and court records, credit reports and even sex offender reports. CSIdentity’s offerings go beyond the simple collation of public data, instead using sophisticated technology to identify potential fraudulent behavior.

CSIdentity’s solutions are used by Fortune 100 financial institutions, public pension funds, telecommunications companies and businesses that offer direct-to-consumer identity theft protection services. CSIdentity’s technologies are used to protect more than 2 million U.S. citizens, both as individuals and businesses, through a suite of business and personal security solutions targeting all aspects of identity theft protection, including identity validation, comprehensive background screenings, identity theft protection for employees and customers, voice biometric identity verification and data breach management.

“CSIdentity is a potentially huge growth story with an ambitious product roadmap,” Guira said. “In addition to expanding its global footprint, we plan to grow its research and development program to ensure we retain our technological superiority.”

Portico Capital Securities LLC acted as the sole financial advisor to CSIdentity. Winstead PC and Gibson, Dunn & Crutcher LLP provided legal advice to CSIdentity and Investcorp, respectively.

About CSIdentity
CSIdentity is the technology leader in providing identity theft and fraud protection services to businesses and consumers. Founded in 2005, The Austin, Texas-based company offers a comprehensive suite of business and personal security solutions targeting all aspects of identity theft. CSIdentity’s products include:

  • CSIdentity SAFE (SM) — Comprehensive background screening, identity verification, alternate names / alias search, authentication and ongoing criminal monitoring.
  • CSIdentity Protector (SM) — Full-service identity theft protection including CyberAgent (SM), insurance and restoration.
  • CSIdentity Breach — Proactive breach preparation services from discovery to resolution.
  • CSIdentity VoiceVerified — Voice biometric identity verification.

For more information, visit http://www.CSIdentity.com.

About Investcorp Technology Partners
Investcorp Technology Partners is a leading private equity investor in small and medium-sized technology businesses in North America and Europe. The team focuses on growth buyout, corporate carveout and public situation transactions. Some of the group’s recent investments include FleetMatics, a leading SaaS telematics software solutions provider, TDX, a provider of analytic tools and services to optimize recovery of defaulted consumer debt, Sophos, one of the largest privately-owned IT security and data protection companies, and Moneybookers, Europe’s leading independent electronic money issuer and online payment system.

Investcorp Technology Partners is part of Investcorp, a leading provider and manager of alternative investment products. It has offices in Bahrain, London and New York and is publicly traded on the London Stock Exchange (IVC) and Bahrain Stock Exchange (INVCORP). In addition to Investcorp Technology Partners, Investcorp has four other lines of business: private equity, hedge funds, real estate and Gulf Growth Capital. Founded in 1982, Investcorp has grown to become one of the largest and most diverse alternative investment managers in terms of both product offerings and geography.

For further information please visit www.investcorp.com.

About Portico Capital Securities, LLC
Established in 2000, Portico Capital Securities is the leading merchant bank with an exclusive focus on the Information and Business Services industry. Portico provides M&A and private capital financing advisory services to the leading private and public growth companies in this Industry. For more information about Portico Capital’s services, transactions, and experience, please visit https://www.porticocap.com/ or contact one of the senior members of Portico noted below.

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Portico contact(s)

Richard R.S. Northrop
Managing Partner

S. Searcy Dryden
Managing Director