Nordic Capital acquires digital identity pioneer Signicat
Signicat takes aim at the fast-growing global digital identity market
Nordic Capital Fund IX (“Nordic Capital”) today announced the acquisition of Signicat, a high-growth provider of digital identity and signatures solutions that operates the leading digital identity hub in the market. Nordic Capital will, in close partnership with the company’s management and existing shareholder Viking Venture, accelerate Signicat’s international expansion and strengthen the company’s market leading position and unique product offering.
Founded in Trondheim, Norway in 2007, Signicat leads innovation in verified digital identity solutions, reducing risk while providing a smart and intuitive user experience. Its solutions enable companies and institutions, both in regulated and non-regulated industries, to offer efficient and user-friendly advanced online authentication, identification verification and electronic signature solutions.
Signicat has more than 500 clients, with a stronghold in the financial services sector where the company works with providers such as DNB, Klarna, Rabobank, Santander, Société Générale and Western Union. The company’s solutions are also increasingly adopted across new verticals, being used for instance by blue-chip companies such as BMW, Konica Minolta and Schibsted Media Group. Among Signicat’s largest customers are also several of Nordic Capital’s current and former portfolio companies including Nordax, Nordnet, Intrum and Resurs Bank. In 2018, Signicat generated revenues of approximately NOK 180 million (EUR 19 million), primarily consisting of recurring subscription or transaction based revenues. The company has circa 115 employees across offices in Norway, Sweden, Finland, Denmark, UK, Germany, the Netherlands and Portugal.
Signicat was acquired from Secure Identity Holding AS and other shareholders. Viking Venture III AS, Signicat’s other major shareholder, will re-invest all proceeds and continue as a minority owner, together with employee shareholders and with Nordic Capital as the majority owner.
“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,” said Gunnar Nordseth, CEO and Co-Founder of Signicat. “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.”
“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,” said Fredrik Näslund, Partner at the Advisor to the Nordic Capital Funds. “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.”
“As a specialised Nordic software investor, we at Viking Venture have backed Signicat to become the market leader within digital identity in the Nordics. Together with Nordic Capital, we will support the company to become a global leader,” said Jostein Vik, Partner, Viking Venture.
The acquisition of Signicat is the ninth investment by Nordic Capital’s latest fund, Nordic Capital Fund IX with EUR 4.3 billion in committed capital and which closed in May 2018. The acquisition builds on Nordic Capital’s recognised expertise and outstanding track record in the technology sector. Nordic Capital has made 14 Technology & Payment platform investments, including Bambora, Point and Trustly, and more than 40 add-ons since 2001.
The parties have agreed to not disclose any financial details.