PORTLAND, Ore., Aug. 18, 2016 /PRNewswire/ -- ID Experts, a leading provider of software and services for cyber breach and identity fraud protection, today announced that it has raised a $27.5 million round of equity funding. Healthcare private equity firm Peloton Equity and cybersecurity venture capital firm Trident Capital Cybersecurity, along with existing investors BlueCross BlueShield Venture Partners and the Sandbox Advantage Fund, participated in the round. ID Experts will use this funding, combined with cash provided from operations, to repurchase shares from select existing shareholders and to continue to innovate its suite of SaaS-based technologies that address the complex cybersecurity and breach risks faced by healthcare, retail, education, and government organizations, their customers and employees, as well as individual consumers.
Ted Lundberg, Partner, and Justin Yang, Principal, from Peloton Equity and Sean Cunningham, Managing Director at Trident Capital Cybersecurity will join the ID Experts board of directors.
"This investment validates the demand for technology and services that mitigates the risk of cyber breaches and resulting identity fraud," said Bob Gregg, CEO of ID Experts. "Our new group of investors is extremely well positioned to support ID Experts continued growth."
The increase in cyber threats is resulting in a surge in data breaches, exposing millions of individuals and their sensitive information. Ransomware is quickly becoming the latest cyber-attack epidemic, with hospitals and health systems from California to Maryland hit with attacks this year. "The healthcare industry is currently the most lucrative target for cyber attacks as evidenced by the recent proliferation of healthcare entity breaches and hospital focused ransomware attacks," commented Ted Lundberg, Partner at Peloton Equity. "We are excited to partner with ID Experts to help such organizations lower their cyber risks, handle an incident if it occurs, and mitigate the damages."
"Cyber threats are a global problem, placing enormous challenges on companies that hold sensitive information," said Sean Cunningham, Managing Director at Trident Capital Cybersecurity. "The demand for solutions that ID Experts is developing will continue to increase. We're anticipating an extraordinary collaboration with the company and our fellow investors."
For over 10 years, ID Experts has developed innovative software, combined with identity protection and breach response services, for organizations to address their cyber risks and protect consumers at risk of identity theft and fraud. Over 3 million individuals in the U.S currently use the Company's MyIDCare identity protection solution, which is designed to protect individuals and families from all nine types of identity theft. The Company's identity recovery experts have a 100% success rate to ensure fast, complete identity recovery. Visit https://www.myidcare.com/ to learn more about the nine types of identity theft and how MyIDCare can protect you.
"Peloton's focus in the healthcare segment will bring additional resources and insights to accelerate the Company's adoption of its innovative technologies and data breach services in healthcare," added Justin Yang, Principal at Peloton Equity. "We are particularly excited about MIDAS™, which we believe is a unique solution that addresses the growing fraud footprint in healthcare."
In order to specifically address healthcare identity crime risks, ID Experts developed a medical ID alert system – MIDAS™ – the first and only such solution intended to engage consumers in helping detect and address healthcare identity theft and fraud. In July of 2015, the Blue Cross Blue Shield Association announced that Blue Cross and Blue Shield companies will make identity protection services available to their eligible customers. ID Experts was selected as one of the preferred providers of these services and is now working with several Blue Cross and Blue Shield companies.
Portico Capital Securities LLC served as exclusive financial advisor to ID Experts with respect to this transaction.
About ID Experts
At ID Experts, we protect millions of consumers with our identity protection software and services and have a 100 percent success record for identity recovery. We are trusted by thousands of organizations to manage cyber and other risks with our data breach response services and are the largest provider of identity protection products to the federal government. We serve customers in healthcare, government, insurance, financial services, and higher education. ID Experts actively contributes to the cyber risk community through organizations including NHCAA, HCCA, MIFA, and IAPP. Visit www2.idexpertscorp.com for more information.
About Peloton Equity
Peloton Equity, LLC (www.pelotonequity.com) is a private equity firm that focuses exclusively on growth capital investments in the healthcare industry. Peloton's investment team has over 40 years of combined investing experience and has made investments across many major healthcare subsectors. Recent investments made by Peloton include AeroCare Holdings, Arcadia Solutions and HealthPlanOne. Peloton leverages its extensive healthcare network, value building diligence and investment process, and portfolio management playbook to add value to its portfolio companies. Peloton seeks companies with between $20 and $200 million of revenue and the management team, market opportunity and business model to grow revenues meaningfully over the life of its investment.
About Trident Capital Cybersecurity
Trident Capital Cybersecurity is a venture capital firm that invests in early-stage companies leveraging emerging technologies in cybersecurity. Trident Capital Cybersecurity is a spinout of Trident Capital, which was among the pioneers in cybersecurity venture capital investing, starting in 1998. Managing Directors Alberto Yépez, Don Dixon and Sean Cunningham jointly lead the cybersecurity investment team and are on the boards of 4iQ, Airtight Networks, AlienVault, Appthority, Bayshore Networks, Blue Cat, Hytrust, ID Experts, IronNet Cybersecurity, Mocana, and Qualys. Renowned as the venture capital firm with the most valuable network of relationships in cybersecurity, Trident Cybersecurity has a 40–person Cybersecurity Advisory Council, including industry CEOs, customers and former top-level government leaders. For more information, visit www.tridentcybersecurity.com.
About BlueCross BlueShield Venture Partners, L.P.
BlueCross BlueShield Venture Partners, L.P. is a corporate venture fund licensed by the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield companies. The fund invests in promising emerging companies of strategic relevance to Blue Cross and Blue Shield Plans. Sandbox Industries is the exclusive provider of investment management services to BlueCross BlueShield Venture Partners. For more information, please visit www.bcbsvp.com.
About Portico Capital Securities LLC
Portico Capital provides independent strategic and financial advisory services in the areas of mergers & acquisitions (M&A), recapitalizations and capital raisings exclusively to private and public companies in the global information and business services sector. The firm, founded in 2000, has offices in Greenwich, Connecticut and London, England. For more information, please visit www.porticocapital.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/id-experts-closes-275-million-round-of-funding-300315265.html
SOURCE ID Experts