Visa to Acquire Israeli Fraud Prevention Company BioCatch for $2.4 Billion

Visa has signed a definitive agreement to acquire Israeli fraud prevention company BioCatch for $2.4 billion in cash. The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to be completed by the end of Visa’s fiscal second quarter of 2027.

Founded in Israel in 2011, BioCatch develops behavioral biometrics technology that uses artificial intelligence and machine learning to identify fraud in real time. The company’s platform analyzes thousands of behavioral, device, application and network signals, including typing patterns, touch gestures and the way users handle their devices.

By examining these signals throughout a digital banking session, the technology can distinguish legitimate customers from fraudsters, identify signs of coercion or manipulation and detect threats such as account takeovers, scams, money mule activity and fraudulent account applications.

BioCatch currently protects approximately 760 million users across 1.8 billion devices worldwide. Its technology is used by more than 350 financial institutions in 21 countries, including over 100 of the world’s largest banks. The company analyzes approximately 19 billion digital banking sessions each month.

Visa said the acquisition would strengthen its existing cybersecurity, fraud prevention, risk management and identity protection capabilities. The integration of BioCatch’s technology is expected to help financial institutions detect threats earlier in the process, before fraudulent activity reaches the payment stage.

“BioCatch will help our clients stop fraud before it reaches the point of payment,” said Andrew Torre, president of value-added services at Visa. He noted that account takeovers and scams cost the global economy more than $1 trillion annually, while AI is enabling criminals to carry out attacks on an unprecedented scale.

BioCatch CEO Gadi Mazor said the company would continue operating under its current leadership and organizational structure after joining Visa. According to Mazor, the combination with Visa will allow BioCatch to bring its behavioral and device intelligence technology to more financial institutions and consumers worldwide.

The company is being acquired from funds advised by global private equity firm Permira and other shareholders. Permira initially invested in BioCatch in 2023 and acquired a majority stake in 2024, in a transaction that valued the company at approximately $1.3 billion. During Permira’s investment period, BioCatch’s revenue nearly tripled, while its gross profit increased more than threefold.

Visa has invested more than $13 billion in technology and infrastructure over the past five years to protect its global payments ecosystem. The acquisition of BioCatch reflects the growing convergence of AI, cybersecurity, identity protection and fraud prevention in the international financial sector