Mitek Systems, Inc. (“Mitek”) (NASDAQ: MITK, www.miteksystems.com), a global leader in digital identity verification solutions, today announced that it has acquired A2iA, SAS, (“A2iA”), a global leader in artificial intelligence (AI) and image analysis, for €42.5 million in cash and shares of Mitek’s common stock.
“The acquisition of A2iA combines two market leaders in image recognition and processing, creating a powerful force with a deep expertise in image analytics,” states industry expert Bob Meara, Senior Analyst at Celent. Mitek software is deployed in 6,100 U.S. banks, including all 10 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. A2iA 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. A2iA recognized revenue of €12.9 million and €1.7 million of operating income in its fiscal year ended December 31, 2017.
“With the addition of A2iA’s technology and team, Mitek’s digital identity verification platform will extend its lead in the industry,” said James B. DeBello, CEO and Chairman of Mitek. “Mitek’s Mobile Verify® product will be able to read government-issued identity documents even more accurately and quickly than today, and authenticate them using A2iA’s advanced AI algorithms, thereby increasing companies’ trust that their customers are who they say they are.”
In acquiring A2iA’s Research Labs, Mitek doubles the size of the existing Mitek Labs team, forming the largest private research group of PhD scientists in computer vision, machine learning and artificial intelligence for this industry. Mitek Labs has been the source of the company’s 39 patents and technology innovation.
“As today’s headlines demonstrate, verifying identity and creating trust in digital channels at scale is vitally important and a continuing challenge,” added DeBello. “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.”
“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.”
Conference Call Information
Mitek management will host a conference call and live webcast for analysts and investors today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss Mitek’s acquisition of A2iA.
To listen to the live conference call, parties in the United States and Canada should dial 888-224-1005, access code 6947851. International parties should dial 323-994-2093, access code 6947851. Please dial in approximately 15 minutes prior to the start of the call.
A live and archived webcast of the conference call will be accessible on the “Investor Relations” section of Mitek’s website at www.miteksystems.com. In addition, a phone replay will be available approximately two hours following the end of the call and it will remain available for one week. To access the call replay dial-in information, please click here.
Mitek is represented by Paul Hastings. A2iA, its shareholder managers and its financial investors Andera Partners (formerly known as Edmond de Rothschild Investment Partners) and bpifrance are represented by Cambon Partners, DLA Piper and Willkie Farr & Gallagher