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.