[May 06, 2016] |
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Jumio Reaches Agreement to Be Acquired by Centana Growth Partners
Jumio Inc., the fast growing online and mobile credentials
authentication company, today announced that it has reached an agreement
on the terms of an asset purchase agreement with an acquisition vehicle
of Centana Growth Partners ("Centana"), a growth equity investment firm
focused on financial services, financial technology, and related
enterprise technology. Under the agreement, Centana would acquire
substantially all of Jumio's assets.
The agreement was reached following a competitive auction conducted
under procedures approved by the United States Bankruptcy Court for the
District of Delaware (the "Court"). The sale also received the consent
of the debtor-in-possession lender and "stalking horse bidder" Jumio
Acquisition, LLC, and the Official Committee of Equity Security Holders.
Jumio and Centana received Court approval for the sale at a hearing that
took place on May 6, 2016.
"The auction process was, as we hoped, competitive and successful," said
Stephen Stuut, Jumio's CEO. "We are pleased to have achieved an outcome
that we believe is not only a terrific opportunity for Jumio going
forward, but supports the interests of all our various stakeholders.
Centana is a great home for Jumio. With its outstanding financial
services expertise and relationships, and the capital to fuel growth,
Centana will provide Jumio with the foundation it needs to achieve
scale. The transaction will be completed quickly and will enable Jumio
to move past our legacy issues to become a stronger, more competitive
company. Importantly, it will be seamless for both our customers and the
dedicated team of employees who serve them."
Eric Byunn, Partner, Centana Growth Partners, commented, "Authentication
is of critical importance to a broad range of online and mobile
applications across industries such as financial services, e-commerce,
travel, and the entire sharing economy. Jumio provides a market-leading
solution, increasing conversion and reducing fraud rates for its
customers, as evidenced by Jumio's strong growth rate, prove business
model, and impressive customer base."
Ben Cukier, Partner, Centana Growth Partners, added, "We look forward to
working with Jumio's employees and experienced management team. We
believe Centana's experience and network in the financial services
ecosystem will help the company accelerate its growth."
Under the terms of the agreement, the package of consideration includes
funding the forecast capital requirements of the company through to cash
break even (forecast to be as much as $15 million), the assumption by
the buyer of all going-forward liabilities of the business, the hiring
of all of the seller's employees on current terms, the ability of the
seller to pay all accrued liabilities of the business during the
bankruptcy case, additional cash consideration, and certainty regarding
a closing of the sale on Monday, May 9, 2016, while also leaving in the
estate potentially valuable claims against third parties.
Having already received Court approval, the transaction is not subject
to any closing conditions and is expected to be completed on Monday, May
9, 2016. The company's subsidiaries located outside the U.S. were not
included in the Court proceedings but are included in the sale.
Landis Rath & Cobb LLP is serving as legal advisor, Sagent Advisors LLC
is serving as financial advisor and Ernst & Young Capital Advisors LLC
is serving as restructuring advisor to Jumio. Winston & Strawn LLP is
serving as legal advisor to Centana Growth Partners.
Court filings and other information related to the proposed transaction
are available at http://omnimgt.com/jumio.
About Jumio
Jumio is a leading identity management and credentials company that
helps businesses reduce fraud and increase revenue while providing a
fast, seamless customer experience. The company utilizes proprietary
computer vision technology to reduce customer sign-up and checkout
friction and verify credentials issued from over 120 countries in
real-time web and mobile transactions. Jumio's products are leveraged by
a wide range of clients; from the leading internet companies to
start-ups, Fortune 500 and FTSE 350 organizations in the financial
services, sharing economy, retail, travel and online gaming sectors.
Headquartered in Palo Alto (News - Alert), California, Jumio operates globally, with
offices in the US and Europe, and has been the recipient of numerous
awards for innovation from leading industry associations.
About Centana Growth Partners
Centana Growth (www.centanagrowth.com)
is a growth equity firm that provides capital to rapidly growing
companies in the financial services ecosystem, including businesses
which operate in the financial services, financial technology and
related enterprise technology areas, in order to accelerate or sustain
their growth. Centana's principals have decades of experience working
with successful companies in these sectors, as well as a strategic
network ideal for helping companies seeking to sell into the financial
services ecosystem. Centana Growth Partners has offices in New York and
Menlo Park.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160506005780/en/
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