Freitech Acquires Israeli Digital Identity Firm Scanovate for $50 Million

Freitech Group is merging with Israeli company Scanovate, which specializes in digital identity and regulatory compliance solutions, in a deal valued at approximately $50 million. The transaction could potentially yield up to $100 million for Scanovate's shareholders. Founded in 2014 by CEO Amir Fishman and CTOs Roi Fishman and Irad Gilboa, Scanovate has developed tools enabling organizations to identify customers, manage their identities, and ensure data integrity according to regulatory requirements in various operating regions.

Scanovate operates in North America, South America, Western Europe, and Israel, serving over 250 clients, including major banks, credit card companies, and insurance firms in Israel. The merger will also bring two of Scanovate's subsidiaries into Freitech: Salusign, an Israeli company founded in 2017 that digitizes business and marketing processes, and ADO Technologies, based in Colombia, which provides Scanovate's services in South America with a focus on digital and biometric identity verification for local regulations.

Freitech, established about a decade ago, focuses on financial infrastructure and services, offering data, software, and software services to banks and fintech companies. The group operates in 14 countries, serves over 500 clients, and employs more than 1,500 people across its subsidiaries. Following the integration, Scanovate will lead Freitech's customer lifecycle management division and continue product development in collaboration with other Freitech companies, including Israeli firms Delta Capita and Tiplink.

Freitech has a history of strategic acquisitions in the financial technology sector, including the Israeli company Tiplink, a regulatory reporting platform from DTCC, and the over-the-counter derivatives business of HSBC. It also acquired the customer identification and onboarding platform from the London Stock Exchange. The current deal was advised by attorneys from APM and Osher Ben Azri.

Freitech Group CEO Andrey Yeshonsky stated that in the age of AI, replicating technology is easy, but building institutional trust, global reach, and operational infrastructure is difficult, highlighting these as Freitech's unique strengths. Scanovate CEO Amir Fishman added that joining Freitech provides the institutional trust and global reach that Scanovate lacked, enabling faster market expansion. Salusign CEO Tzachi Zeigerman sees the merger as an opportunity to expand Salusign's global operations and product offerings.