The Riverside Company, a global private investor focused on the smaller end of the middle market, has acquired a controlling stake in Cryptomathic, a leading Danish provider of high-end hardware agnostic secure server solutions to a wide range of industry sectors, including banking, government, technology manufacturing, cloud and mobile. The company sells state-of-the-art security solutions including key management, e-signature and authentication, eID, mobile app security and EMV to a global customer base primarily in banking and other financial services sectors. Riverside, supported by its institutional co-investors, is partnering with Cryptomathic’s founder and management team who continue to hold key management positions and a minority stake in the business.
Founded in 1986, Cryptomathic has been a pioneer in providing secure solutions to the financial services sector. It was one of the first companies to commercialize cryptographic algorithms, and over the past 35 years has built up one of the strongest portfolios of cybersecurity solutions in the market. Global household names in banking and technology rely on the company’s technology to secure their customers’ data. Cryptomathic holds over 30 patents and was named one of the world’s 40 most innovative companies by the World Economic Forum in the past.
Riverside was attracted by Cryptomathic’s market leadership at the top level of crypto-based cybersecurity software where the strictest requirements exist – a segment of the market where competition is limited – as well as the company’s international presence and strong management team. The company enjoys a high level of customer retention with the opportunity for robust organic growth, as well as expansion into new customer and product verticals.
Riverside was advised by Bech Bruun, Allen & Overy, Oliver Wyman, PWC, Deloitte and WDP while the company and founders were advised by EY Corporate Finance and Horten.
Debt and equity co-investment was provided by Arcmont and Riverside’s institutional LPs.
