Insight Venture Partners leads capital infusion into identity software provider
CULVER CITY, CA (06/19/2013) – Card Scanning Solutions (CSSN), the leading provider of Identity Solutions software for reading data from driver licenses, medical cards, and other official documents, announced today that Insight Venture Partners, Red Oak Growth Partners, and Egis Capital Partners have made an investment in the Company. Financial terms of the deal were not disclosed.
“This capital infusion will help CSSN to accelerate its innovative product-development efforts and more rapidly expand our reach in the market,” said Yossi Zekri, CEO of CSSN. “Our investors’ deep experience in software and innovative technology makes them great partners for us as we launch our new offerings for mobile devices such as IDScan® GO, MedicScan®GO, and cloud-based image processing.”
Earlier this year, the company has launched a new version of its advanced Snapshell® image capture appliance, Snapshell® R2 and Snapshell® Passport. In combination with CSSN’s industry-leading software, Snapshell quickly and accurately processes data from almost any form of official identification card or document.
CSSN supports customers in a variety of vertical industries including healthcare, financial services, facilities/property management and education. The company works closely with its industry partners to integrate its technology into their application workflow, ensuring a seamless experience for the customers’ registration and validation processes.
“We are excited to partner with an outstanding founding team at CSSN that has consistently delivered a profitable and growing business over its history,” said Larry Handen, Managing Director at Insight Venture Partners. “Their efforts over the last decade have built a market-leading company leveraging a unique technology solution that combines image processing, OCR, and an extensive image library that can be applied to many applications.”
“The need for real-time identity-validation, fraud-prevention and customer-registration applications is growing rapidly and is a catalyst for CSSN,” said Richard Erickson, Managing Director at Red Oak Growth Partners and Chairman of CSSN’s Board of Directors. “We were extremely impressed at the depth and quality of CSSN’s longstanding relationships with market-leading software companies in core vertical industries and look forward to helping them further expand.”
Zekri, Handen, and Erickson will join CSSN’s Board of Directors along with Conor Mullett from Red Oak, Dany Hatzav of CSSN , Dan May of Insight, and Robert Chefitz of Egis.
Goodwin Proctor LLP and Deloitte LLP advised the Investors in the transaction. CSSN was advised by Peter A. Sokoloff & Co. and Bradley Consulting Group. Silicon Valley Bank provided a senior credit facility to support the investment.
About Card Scanning Solutions
Card Scanning Solutions has been a leading developer of image processing and OCR technologies since 1999. The company’s innovative solutions process data from drivers licenses, ID’s, business cards, passports, checks, and medical cards. Card Scanning Solutions offers valuable solutions that allow data to be accurately read, captured, and exported in real time to 3rd party applications and services. CSSN’s Identity solution software improves security, increases productivity, and results in greater efficiency and cost savings for a wide variety of industries including Medical, Financial, Hospitality, Security and more. For more information, please visit www.card-reader.com
About Insight Venture Partners
Insight Venture Partners is a leading global private equity and venture capital firm investing in software, eCommerce, internet, and data-services companies. Founded in 1995, Insight has raised more than $7.6 billion and made more than 190 investments worldwide. Insight’s mission is to find, fund, and work successfully with visionary executives who are driving change in their industries. Insight provides them with practical, hands-on growth expertise to foster long-term success. For more information on Insight and all of its investments, visit www.insightpartners.com
About Red Oak Growth Partners
Red Oak Growth Partners is a technology focused, lower middle-market private equity firm that invests in profitable, growing Business Services and Software Companies in North America. Red Oak’s goal is to build relationships with management and entrepreneurs that can leverage our 40 years of investment, operating, and business development experience to accelerate growth. Red Oak takes an active, hands on approach in partnering with our Companies to create value and market leaders. For more information on Red Oak Growth Partners, visit www.redoakgp.com
About Egis Capital
Egis Capital Partners is a leading private equity firm focused on middle-market buyout and late-stage growth investments in the Security & Homeland Defense sector. Egis targets companies primarily located in North America with enterprise values ranging between $30 million and $200 million that require a total investment between $10 million and $40 million. Egis Capital Partners was founded by Robert Chefitz in 2007 to capitalize on over 30 years of combined industry experience across private equity, investment banking, and operations. For more information on Egis Capital Partners, visit www.egiscapitalpartners.com