Digital identity verification service provider Mitek has announced its acquisition of A2iA, a French AI and image analysis company.
The deal was for €42.5 million (approximately USD $50 million) in cash and shares of Mitek’s common stock.
“We are excited to be a part of the Mitek team,” added Jean-Louis Fages, A2iA President and Chairman. “The combination of our company’s industry-leading technologies with Mitek’s resources as a publicly-traded U.S. company will provide our partners in Europe, the Americas and across the globe with unparalleled capabilities.”
Verifying identity and creating trust in digital channels at scale is vitally important and a continuing challenge. The world’s most valuable companies will be the ones that effectively apply advanced AI to solve this global business challenge.
– James B. DeBello, CEO and Chairman, Mitek
According to a press release, Mitek software is deployed in 6,100 U.S. banks, including all of the top 10 largest U.S. financial institutions. A2iA’s software is also used by top U.S. banks, as well as 100% of U.K. banks, 90% of French banks, 90% of Brazilian banks and more than 75,000 ATMs worldwide.
Its platform uses artificial intelligence and machine learning to create proprietary algorithms that process millions of checks, IDs and documents each day for banks, retailers, insurance companies, mobile operators, healthcare providers and governments in more than 42 countries and 11 languages.
The company recognised revenue of €12.9 million (approx. $15.1 million) and €1.7 million (approx. $2 million) of operating income in its fiscal year ending December 31, 2017.
“As today’s headlines demonstrate, verifying identity and creating trust in digital channels at scale is vitally important and a continuing challenge,” said James B. DeBello, Mitek’s CEO and Chairman. “The world’s most valuable companies will be the ones that effectively apply advanced AI to solve this global business challenge. The combination of Mitek and A2iA defines the new leading edge in AI for document and identity verification.”
In a conference call with analysts, DeBello added: “They have global coverage, including in languages that we don’t […] I have known them personally for over a decade and competed against them in some core products. We believe this is a competitor we have absorbed.”