Investcorp books 4x on CSID sale

The wealth manager has sold the cybersecurity company to Experian in a deal valuing the business at $360m.

Bahrain-listed Investcorp has agreed to offload CSIdentity (CSID) to global information services company Experian in a deal valuing the business at $360 million, according to a statement from the firm.

The sale, the firm’s fifth in the last six months, is understood to have generated a 4x return for Investcorp and its investors.

Founded in 2006 and headquartered in Austin, Texas, CSID provides enterprise level identity theft protection technology solutions to consumers, businesses and government agencies on the basis of a recurring software-as-a-service model.

Investcorp initially invested in the business in December 2009 using capital from its Investcorp Technology Partners III, a 2007-vintage commingled vehicle that closed on $500 million. According to online private equity and venture capital technology monitor Bison, that fund is currently delivering a return of 1.8x and an internal rate of return of 17 percent.

Under Investcorp’s ownership, revenues at CSID have grown from approximately $12 million to more than $125 million, while EBITDA has grown from $4 million to more than $35 million, the firm said.

The sale of CSID follows the exit of Danish roofing business Icopal, which the firm agreed to sell in a €1 billion trade sale in January. The same week the firm acquired a minority stake in Bindawood Holding, one of Saudi Arabia’s leading supermarket groups.

The firm has recently undergone a leadership change. Last July Mohammed Al Ardhi took on the role of executive chairman as part of Investcorp’s succession plan following Nemir Kirdar’s decision to retire as executive chairman and chief executive officer. Mohammed Al-Shroogi, formerly President of Investcorp’s Gulf business, and Rishi Kapoor, formerly Investcorp’s chief financial officer, were appointed co-CEOs. Kirdar became chairman of the firm’s board of directors in April 2015.

In November Al Ardhi set out his strategy for growth at Investcorp, which includes plans to more than double the firm’s $10.6 billion of assets under management in five to seven years.

Look out for PEI’s exclusive interview with executive chairman Mohammed Al Ardhi and head of corporate investment in Europe Hazem Ben-Gacem in the upcoming issue of Private Equity International.