AU10TIX, an Israeli automated identity verification startup, could be sold at a company valuation of as much as $1.2 billion. According to a report in Calcalist, the brothers Ron and Gil Atzmon, who hold a 70% stake in the company, are currently entertaining offers to sell out their shares.
Calcalist reported that AU10TIX has hired the services of Goldman Sachs and Deutsche Bank to lead the sale process. The brothers could make between $300-750 million from the sale, depending on how much of their stake they eventually sell.
While huge, the $1.2 billion for AU10TIX falls far short of the $5.4 billion that Intel paid for Israel’s Tower Semiconductor, a leading foundry for analog semiconductor solutions, in February.
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Automated identity checks are advantageous over manual ones in that they allow firms to verify and onboard new customers at scale in real time. Manual verification not only requires the hiring of large teams to handle the processing but also requires that the personnel be continually updated on the varying laws and regulations. This takes a lot of time and also leaves open the possibility for human error.
Founded in 2010, AU10TIX is an identity management company headquartered in Israel declaring its mission to obliterate fraud and further a more secure and inclusive world. The company provides critical, modular solutions to verify and link physical and digital identities so businesses and their customers can confidently connect.
Over the past decade, AU10TIX has partnered with major global brands for customer onboarding and customer verification automation. The company boasts that it is continuing to work on the “edge of what’s next for identity’s role in society.” AU10TIX states that its proprietary technology provides results in less than 8 seconds, enabling businesses to onboard customers faster while preventing fraud.
In March, AU10TIX was awarded the silver for Company of the Year in Artificial Intelligence in Security in the 2022 Cyber Security Global Excellence Awards for preventing over $700 Million in fraud-related losses through cutting-edge Machine Learning and AI Technology.
“We are honored by the recognition from Globee Awards as a company of the year, which further validates our commitment to our partners and their security needs,” said Carey O’Connor Kolaja, chief executive officer of AU10TIX, at the time. “Digital identity fraud has become very global, very organized and interconnected. For businesses, there is a need for real time identity verification now more than ever and AU10TIX is committed to enabling businesses to provide safer services, promote trust and seamlessly secure everyday access to life, work and play.”