Boston-based private equity firm Audax Group Inc. bought a controlling interest in Culver City-based identification verification software developer Acuant Inc. in a deal finalized Sept. 24.
The controlling interest was acquired by Audax Group from Insight Venture Partners, Lightview Capital and Egis Capital Partners.
Acuant was founded in 1999 and its AssureID software is used to scan and authenticate documents and prevent identity fraud. The company offers an array of verification software including facial recognition and auto-fill. Clients include LexisNexis Group Inc., Experian Plc, HID Global Corp. and Honeywell Inc.
Acuant “offers a best-in-class product suite that addresses rising transactional fraud in the digital economy,” according to Audax chief executive Geoffrey Rehnert. Rehnert said Audax believes “the company is strongly positioned for continued growth as organizations seek solutions to reduce risk, increase revenue and meet compliance objectives.”
Both firms declined to share transaction terms, but Bloomberg notes Audax rarely invests in firms with valuations less than $15 million.
“By bringing on Audax as an investment partner, we now have what we believe are the strategic resources to dramatically accelerate Acuant’s growth,” said Acuant Chief Executive Yossi Zekri. “With Audax on board, we plan to accelerate expansion into new product lines while continuing to innovate within our current product portfolio,” Zekri concluded.
Tech reporter Samson Amore can be reached at email@example.com or (323) 556-8335. Follow him on Twitter @samsonamore.