Scanovate, a Digital Identity Company, Acquired in Deal Expected to Reach $100M

Scanovate, a digital identity company, was acquired by Prytek Group earlier this month in a deal expected to reach a $100 million payout. In the first phase of the deal, Prytek will pay $50 million for Scanovate and two of its subsidiaries, Cellosign and ADO Technologies.

Scanovate was founded in 2014 by CEO Amir Fishman and co-CTOs Roy Fishman and Irad Gilboa. The company develops technology to enable large enterprises to manage the digital identity of customers while complying with regulatory requirements, including scanning identification documents directly from mobile devices.

Scanovate operated as a bootstrapped company, meaning it was self-funded. It currently serves more than 250 enterprise customers across North and South America, Western Europe and Israel, among them 120 financial institutions. The acquisition is part of Prytek‘s broader strategy to build a hub of technology and service businesses serving major financial institutions, the business paper Calcalist Tech reported. Both Scanovate and Prytek are Israel-based companies.

“As the CEO of a software company, I know firsthand the difficulty for companies of our size to grow and penetrate new markets on their own,” Amir Fishman told Calcalist Tech. “Building institutional trust with banks and large financial institutions is a slow, expensive, and sometimes impossible process for a company of our size.”

Fishman said Prytek offered Scanovate access to an existing international customer base, infrastructure and sister companies that have already entered markets the company wanted to reach.

“It is an opportunity to take the company’s products and solutions to additional markets, and place them in front of customers who would have taken us years to reach on our own.”

On joining Prytek, Scanovate will lead the CLM (client lifecycle management) segment in the group and will continue to develop new products in collaboration with other companies in the group.

“In the AI era, where technology is rapidly becoming a commodity, a technology product can be built in months,” Prytek Group founder and CEO Andrey Yashunsky told the business paper Globes in response to questions about the acquisition. “What is much harder to replicate is the trust of institutional clients, global reach, operational infrastructure and relationships built over years.”