Mitek Systems, the identity verification solutions company, announced Monday (November 5) that its board of directors have unanimously decided to reject an offer from ASG Technologies Group, which is a portfolio company of Elliott Associates and Elliott International.
In a press release, Mitek Systems said that after consulting with financial and legal advisors it determined the offer was not in the best interest of Mitek’s shareholders. In October Reuters reported Mitek rejected the offer because it prefers to remain independent. It does comes as the company is in a state of flux after announcing in August Chief Executive Jim DeBello and Chief Financial Officer Jeff Davison were leaving the company either to retire or pursue other things. DeBello has been with Mitek for 23 years, serving as its CEO for 15 years and board chairman for two years. DeBello helped Mitek become a leading provider of Mobile Deposit and Mobile Verify ID verification, and played a key role in the company’s listing on NASDAQ. In addition, he successfully expanded Mitek’s product offerings with three global acquisitions and over 50 patents, five of which he holds as co-inventor of Mobile Deposit. CFO Davison will depart at the end of November to join a firm near his home in Bozeman, Montana. His resignation is unrelated to DeBello stepping down.
“Mitek sits at the forefront of powerful global trends in mobile commerce and is well-positioned to deliver significant and sustained growth, as we tap into our technology leadership, customer relationships and proven ability to innovate and scale,” Mitek Chairman Bruce Hansen said in the press release. “Mitek has achieved record revenue for both the fourth quarter and full year 2018, as well as its nineteenth consecutive quarter of non-GAAP profitability. The growth trajectory of the Company is substantial, and we are making excellent progress in our search to name Mitek’s new CEO.”
The executive went on to call ASG’s offer an “opportunistically-timed proposal” and said it engaged in tactics that are “designed to seize for ASG value that belongs to Mitek’s shareholders.” The board believes the offer “substantially undervalues the company and its prospects for continued growth and value creation.”