Nordic Capital Fund IX (Nordic Capital) has acquired digital identity and signature solutions provider Signicat for an undisclosed amount.
With the latest transaction, Nordic Capital will now partner with Signicat’s existing shareholder Viking Venture to speed up the identity solutions developer’s expansion.
Signicat was founded in 2007 in Trondheim, Norway. The company provides verified digital identity solutions, which help in reducing risk and accentuating user experience.
Its solutions allow businesses and institutions, across regulated and non-regulated industries, to provide advanced online authentication, identification verification and electronic signature solutions.
The company has more than 500 clients and has a strong foothold in the financial services sector. It offers services to companies, including DNB, Klarna, Rabobank, Santander, Société Générale and Western Union.
Some of Signicat’s customers include several companies owned by Nordic Capital including Nordax, Nordnet, Intrum and Resurs Bank.
Last year, Signicat generated nearly NOK180m (€19m) in revenues, primarily from recurring subscription or transaction based revenues. The company has a workforce of about 115 employees across offices in Norway, Sweden, Finland, Denmark, the UK, Germany, the Netherlands and Portugal.
Signicat was acquired from Secure Identity Holding and other shareholders.
Viking Venture III, another major shareholder in the company, it will re-invest the proceeds and will continue as a minority owner, along with the employee shareholders and with Nordic Capital as the majority shareholder.
Signicat is the ninth investment by Nordic Capital’s fund Nordic Capital Fund IX, which has €4.3bn committed capital.
Signicat CEO and co-founder Gunnar Nordseth said: “As one of the most prominent and experienced investors in the FinTech sector with a long and proven track record of growing businesses, Nordic Capital is the perfect partner to support Signicat’s accelerated international expansion strategy.
“We live in a digital society where interactions between consumers and institutions are predominantly online and mobile-first. Trust is at a premium, and digital identity is the solution.
“Over the last 12 years Signicat has built a digital identity platform with all the tools any institution requires to establish mutual trust with its customers. With the ongoing global digital transformation, we are ideally placed to address this burgeoning market opportunity.”
Nordic Capital Funds partner Fredrik Näslund said: “Born from the most advanced digital identity market in the world, Signicat is a recognised leader in one of the most exciting and fast-growing technology areas globally acting as a key enabler for the digital economy.
“The company has shown consistent high growth since inception, driven both by a rapidly increasing number of customers and strong volume growth among existing customers.
“Signicat’s highly experienced management team is well positioned to capitalise on enormous growth opportunities across geographies, customer verticals and products, as the digital transformation of the economy continues.
“Drawing on Nordic Capital’s significant experience across enterprise software, payment technology, financial services, and from scaling businesses globally, we are enthusiastic about the opportunity to help Signicat to further strengthen its market position and customer offering.”