Private Equity Firm Takes $80 Million Stake in Kount
Dec. 16, 2015
CVC Capital Partners and Kount today revealed the global private equity firm has taken an $80 million equity stake in the Boise, Idaho-based antifraud technology provider. Kount, which provides cloud-based fraud detection solutions for e- and m-commerce merchants, online payment processors and PSPs, said the capital infusion will be put to work immediately to bolster sales and marketing efforts and expand outside the U.S.
“We found the perfect partner in CVC,” Brad Wiskirchen, CEO of Kount, told CardNotPresent.com. “They have a remarkable footprint, a remarkable portfolio of companies and a remarkable history of helping companies grow. With them as a partner we can accelerate the growth of the business in the way we’d like to: enhancing the product offering and expanding our sales and marketing efforts significantly, not just domestically but internationally.”
According to Kount executives, the company had evaluated dozens of different potential acquirers and partners of different kinds before selling a stake (the percentage size of which neither Kount nor CVC have disclosed) to a private equity firm. While there may have been advantages to selling to a company in the payments space or considering a more strategic partnership, CVC’s nature gives Kount flexibility it might not have had otherwise, according to Don Bush, vice president of marketing for Kount.
“It allows us to maintain our independence,” Bush said. “If we got tied to a strategic, it could have eliminated some of the folks we do business with. This was the best option overall to accelerate our growth and maintain our independence.”