Jumio Announces Sale of Business

PALO ALTO, Calif.–([1])–Jumio Inc., the fast growing online and mobile credentials
authentication company, today announced that it has agreed to sell
substantially all its assets to Jumio Acquisition, LLC (“Jumio
Acquisition”), an entity formed by Eduardo Saverin. An early backer of
Jumio, Mr. Saverin remains a significant stockholder and secured debt
holder of the company. The sale will be subject to other bids that may
be received.

Jumio is confident that a sale is the single best path to provide the
company with the necessary resources to continue to fund and scale the
business as it enters its next phase of growth. Jumio is well positioned
to build on its strong momentum through increased customer wins and new
vertical entry.

Stephen Stuut, Jumio’s CEO said, “Jumio created the online ID
verification industry, and we are thriving from an operational
standpoint as we continue to see robust bookings and build strong
relationships with some of the most recognizable brands and companies in
the world. After thoroughly evaluating all available options, we
determined that an asset sale is in the best interests of Jumio and our
stakeholders. We expect this process to be seamless for our customers
with no disruption to our operations.”

Certain legacy issues combined with related government investigations
and proceedings have made it difficult for Jumio to secure necessary
funding for its operations. As a result, Jumio intends to implement the
sale as an asset sale under Section 363 of the U.S. Bankruptcy Code. To
that end, Jumio’s U.S. business has commenced voluntary Chapter 11
proceedings in the U.S. Bankruptcy Court for the District of Delaware to
facilitate the process. This action is expected to allow the company to
provide for an orderly sale of its assets in a court-supervised
environment. The company’s subsidiaries located outside the U.S. are not
included in the court filings but are included in the sale. Jumio
expects all of its operations to continue without disruption during the
sale process. Customers and employees should see no interruption as a
result of this process.

Stuut continued, “Despite some of the challenges Jumio’s leadership team
inherited, our underlying business remains exceptionally strong. The
court-supervised sale and restructuring process will allow us to
strengthen the Company’s financial structure and extend our leadership
position in ID verification.”

Mr. Saverin stated, “The fair and orderly process announced today will
allow Jumio’s new management and its employees to continue to serve its
top tier customers and to realize the company’s potential. With the
company’s future operations in good hands, Jumio Acquisition is pleased
to make this stalking horse bid to facilitate an orderly transition to a
promising future for Jumio.”

In conjunction with the proposed transaction, Jumio Acquisition or its
affiliates have committed to provide Jumio with $3.7 million in
“debtor-in-possession” financing at a rate of 4% per annum, which the
company believes to be an attractive and below-market rate, to support
the company’s continued operations during the sale process. In addition,
the company has filed a number of customary motions to facilitate
ongoing operations.

Jumio Acquisition will serve as the “stalking horse bidder” in a
court-supervised auction process. Accordingly, the asset purchase
agreement is subject to higher and otherwise better offers, among other
conditions. If Jumio Acquisition prevails, it intends to make employment
offers to Jumio’s existing team to enable the business to run in a
seamless manner for the benefit of customers, employees, partners and
other stakeholders.

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.

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, 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.

Forward-Looking Statements

Statements in this press release that are not strictly historical in
nature are forward-looking statements within the meaning of the federal
securities laws, including statements regarding Jumio’s products and
solutions, demand for its products and future growth, and its ability to
obtain the approval of the Bankruptcy Court with respect to motions
filed in the bankruptcy proceedings, including with respect to the asset
sale and “debtor-in-possession” financing transactions. These
forward-looking statements are based on current information and
expectations that are inherently subject to change and involve a number
of risks and uncertainties. Actual events or results might differ
materially from those in any forward-looking statement due to various
factors, including the terms and conditions of any reorganization plan
that is ultimately approved by the Bankruptcy Court, and the actions and
decisions of creditors, regulators and other third parties that have an
interest in the bankruptcy proceedings. Jumio assumes no obligation to
update the information in this press release, to revise any
forward-looking statements or to update the reasons actual results could
differ materially from those anticipated in forward-looking statements.


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