Identity assurance provider Signicat has been acquired by private equity investor Nordic Capital, which hopes to accelerate the company’s international expansion. Financial terms of the agreement were not disclosed.
Fredrik Näslund, Partner at the Advisor to the Nordic Capital Funds, said Signicat “has shown consistent high growth since inception, driven both by a rapidly increasing number of customers and strong volume growth among existing customers.” He added that the company’s “highly experienced management team is well positioned to capitalize on enormous growth opportunities across geographies, customer verticals and products, as the digital transformation of the economy continues.”
Nordic Capital acquired Signicat from Secure Identity Holding, Viking Venture III, and other shareholders. Viking will re-invest proceeds from the deal, making it a minority owner.
Signicat’s digital identity solutions make customer onboarding faster, more secure, and compliant with privacy and data protection regulations by replacing paper-based processes. At FinovateEurope 2017, the company showcasedSignicat Assure, a digital identity verification product; and Signicat Sign, an e-signature offering.
Gunnar Nordseth, CEO and Co-Founder of Signicat, referred to Nordic Capital as “the most prominent and experienced investors” in fintech and said that the company is the “perfect partner” to support Signicat’s international expansion strategy.
Founded in 2007, Signicat’s 115 employees across offices in Norway, Sweden, Finland, Denmark, the U.K., Germany, the Netherlands, and Portugal serve 500 clients including Klarna, Rabobank, Santander, Société Générale and Western Union, BMW, and Konica Minolta. Prior to today’s announcement, Signicat had raised almost $9 million.
Identity assurance provider Signicat and digital identity verification company Mitekpartnered to improve the onboarding experience for end customers while helping banks comply with new regulations.
The two teamed up to create a solution specifically for European-based financial services providers, who are facing a handful of new and ever-changing regulations, including PSD2, AMLD5, and eIDAS. The new tool, available in Signicat’s Digital Identity Platform, integrates Mitek’s Mobile Verify solution to authenticate identity documents presented during a remote, mobile onboarding process. To comply with AML and KYC regulations, Mitek’s Mobile Verify captures an image of the identity document to ensure its authenticity.
“Partnering with Mitek enables us to jointly offer European financial services institutions a customer on-boarding solution that is 100% online,” said Gunnar Nordseth, CEO at Signicat. “The partnership is designed to remove friction from the customer on-boarding process to ensure financial institutions can effectively compete in the marketplace.”
Nordseth also noted that Signicat clients can now simultaneously benefit from Mitek’s Mobile Verify solution, as well as Signicat’s secure authentication, electronic signing, and sealed document archival. Signicat also offers an eID hub, which consists of a wide variety of third party eID providers covering regions all over the world.
Founded in 2007, Signicat demoedSignicat Assure and Signicat Sign at FinovateEurope 2017. Assure combines national e-identities, commercial e-identities, and multiple other methods that offer a fast way to verify the customer’s identity for onboarding. Sign is a digital signature solution that ensures the origin and integrity of the document while maintaining non-repudiation from the sender. In January of this year, the company closed a $2 million funding round, bringing its total financing to $3.9 million.
Mitek is publicly traded on NASDAQ under the ticker “MITK” with a market cap of $307 million. Mitek was founded in 1985 and is headquartered in San Diego, California. The company most recently demoed its MobileVerify solution at FinovateFall 2017. Last month, Mitek acquired artificial intelligence and image analysis company A2iA for $49.7 million.