Market Insights

They’ve Gone To Plaid: Friday Dealbook for 1/17/2020

January 17, 2020

Well, let’s get straight to the point: Visa announced on Monday that it acquired Plaid for a mindboggling $5.3 billion, two times Plaid’s final valuation. Meanwhile, LexisNexis Group and Apple bought ID Analytics ($375 million) and xnor.ai ($200 million), respectively, at modest prices in comparison. At the risk of sounding like a broken record (see last week’s Dealbook), corporations are continuously choosing to acquire existing, successful products when faced with the “build vs buy” decision. Check out our 2019 Identity Landscape for insight into key market segments with enablers ripe for acquisition, and the platforms most likely to buy them.

 

The Top Deals Covered by OWI this Week

 

ID Analytics \ idanalytics.com \ Founded in 2002

Provider of identity risk and fraud management services intended to offer credit and fraud risk services with patented analytics for minute insight into consumer behavior. The company’s services deliver on-demand identity intelligence across various points of customer contact, including online, call centres, mail and in-store interactions, ID Score-Action, which calculates an identity risk score, ID Score-Revenue, enabling companies to make decisions that improve customer experiences, enhance revenue, reduce fraud and drive cost savings.

The company reached a definitive agreement to be acquired by LexisNexis Group, a subsidiary of RELX Group, for $375 million on January 13, 2020.

 

Plaid \ plaid.com \ Founded in 2012

Developer of a data network programming interface designed to allow consumers to connect popular fintech applications with their traditional bank accounts. The company’s platform accesses transactions and personal data like names, phone numbers, addresses and emails for each account from thousands of financial institutions, authenticating them and verifying information in real-time, enabling consumers and businesses to interact with their bank accounts, check balances, and make payments through financial technology applications.

The company reached a definitive agreement to be acquired by Visa (NYS: V) for $5.3 billion on January 13, 2020.

 

xnor.ai \ xnor.ai \ Founded in 2017

Developer of machine learning software models designed to work with applications for retail analytics, drones, automotive, industrial automation, and smart cameras. The company’s software is able to deliver very high performance, low power machine learning models suitable for sophisticated analytics on resource-constrained edge devices, as well as delivering fast and scalable algorithms with no cloud and internet connectivity required, enabling users to achieve deep learning, machine vision, and speech recognition to be done directly on devices.

The company was acquired by Apple (NAS: AAPL) for an estimated $200 million on January 15, 2020.

 

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Investor Highlight

 

Project A \ project-a.com \ Founded in 2012

Project A is an early-stage venture capital investment firm that prefers to invest in companies operating in the e-commerce, advertising, fin-tech, mobility, marketplaces, travel tech, education technology, consumer and SaaS sectors. The firm was founded in 2012 and is headquartered in Berlin, Germany.

Active Portfolio – 50

Investments (TTM) – 17

Med. Round Amount – $7.48M 

Med. Valuation – $24.44M

Exits – 22

 

Deal History

In the past year, Project A has invested in the following 5 identity companies:

Anyline

CrossEngage

Dixa

Qunomedical

Sennder

 

 

*Source: PitchBook Data Inc. with proprietary keyword searches set by OWI Analysts