San Diego-based Mitek, a firm that specializes in capturing mobile data for customer acquisition, has acquired Dutch identity verification company IDchecker.
The purchase price is up to $10.6 million, subject to performance metrics to be met by IDchecker, with $5.85 million in cash and $2.75 million in Mitek stock guaranteed. Mitek will give IDchecker $2 million more in common shares if it achieves certain revenue and profit goals.
"By expanding our product portfolio, we will transform Mitek into a global provider of mobile capture and identity solutions in the multi-factor authentication market which is projected by the global market research firm MarketsandMarkets to be worth $10.75 billion by 2020," Mitek president and chief executive officer James DeBello said in a statement accompanying the company's announcement of the acquisition.
IDchecker specializes in verification of the identity of cloud-based users. Customers who use cloud services, which include international payments, can be authenticated through a service that recognizes approximately 3,500 different identification documents from across the world. IDchecker also provides employment verification, ecommerce, and gaming services.
According to its release Mitek plans to incorporate IDchecker's products into photo verification of documents to accentuate the mobile deposit and account opening service the company says it already offers to over 3,700 banks and financial services firms.
"Consumer preference for shopping and opening accounts via the mobile channel is not just a U.S. phenomenon it is a rapidly growing worldwide trend," said Mitek's DeBello. "This acquisition enables Mitek to provide ID capture and authentication to companies who operate in highly regulated markets around the world."