ID Experts® Closes $27.5 Million Round of Funding
New Investors include Peloton Equity and Trident Capital Cybersecurity
PORTLAND, Ore.— August 18, 2016 — 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.