Mitek, who specializes in mobile onboarding and capturing solutions, announced they would be acquiring identity document verification provider IDchecker for $10.6 million. Mitek owns several patents related to mobile imaging technology used for mobile deposits and other applications for financial institutions but will now incorporate photo verification of identity and other documents following the acquisition of IDchecker.
While Mitek already had 21 patents issued, the acquisition of IDchecker will bring more. The patented algorithms and techniques behind IDchecker’s FACELINK facial recognition technology will complement the suite of services Mitek already provides to 3,700 financial institutions utilizing their Mobile Deposit services. In addition to the auto capture patent and facial recognition technology IDchecker brings, the acquisition makes Mitek’s ID verification capabilities and global presence more robust as their global ID document coverage expands to over 3,500 document types worldwide.
Mitek has focused on services to facilitate mobile banking services for financial institutions. With more and more consumers using mobile apps and web browsers to do their banking, offering conveniences like remote deposit by snapping a picture of a check are becoming a must. In addition to mobile deposits Mitek offers other services that make use of mobile image capturing, including verifying driver’s licenses, balance transfers and bill payments. While well established and known by financial institutions in the United States, the acquisition of IDchecker not only builds on Mitek’s technology and services, but brings in new types of global clients including eCommerce merchants, international payments and information services companies. James DeBello, Mitek president and CEO, elaborated on how the IDchecker acquisition will “enable Mitek to provide ID capture and authentication to companies who operate in highly regulated markets around the world.”
On May 26 Mitek announced that they had entered into a definitive agreement to acquire IDchecker for up to $10.6 million which includes $5.85 million in cash, $2.75 million in Mitek common stock when the deal closes, and up to an additional $2 million in Mitek common stock based on income targets. Michael Hagen, IDchecker founder and CEO, will come onboard as the Managing Director of IDchecker and Corporate ID Strategist with Mitek.
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