Plaid / Cognito 2022
Plaid acquired Cognito on January 12, 2022.
- Target
- Cognito
- Acquirer
- Plaid
- Deal type
- Undisclosed
- Announced
- January 12, 2022
- Sub-sector
- Regtech
Transaction overview
- Plaid announced the acquisition of Cognito on January 12, 2022; the deal closed the same day.
- Financial terms were not disclosed by either party.
- Cognito is a US-based identity verification and KYC compliance platform founded in 2016.
- Cognito served over 400 businesses at the time of the deal, including fintech companies and financial institutions.
- Plaid connects consumer bank accounts to financial applications and counts thousands of developers on its platform.
- The acquisition gave Plaid a native identity verification layer to complement its existing data network.
- Cognito's products include ID document verification, selfie checks, and watchlist screening.
Why it matters
- The deal marked Plaid's first move into identity verification, extending its network beyond bank account connectivity.
- Combining bank account data with KYC tooling positions Plaid to serve compliance workflows that previously required separate vendors.
Strategic rationale
Plaid acquires identity verification and KYC platform to add anti-fraud and onboarding compliance layer on top of its bank account data network.
Deal terms & multiples
About Cognito
Cognito is a San Francisco-based identity verification company founded in 2016. Its platform offers ID document scanning, biometric selfie matching, and sanctions and watchlist screening, primarily for fintech and financial services customers. The company was backed by venture capital and had built integrations aimed at helping businesses meet Bank Secrecy Act and KYC obligations. At acquisition, Cognito reported serving more than 400 businesses.
- Founded
- 2016
- HQ
- United States
- Key metric
- 400+ business customers at time of acquisition
About Plaid
Plaid is a San Francisco-based financial data network founded in 2013. Its technology connects consumer bank accounts to third-party financial applications via API, and it counts thousands of developers and apps—including Venmo, Robinhood, and Betterment—as customers. The company raised $425 million at a $13.4 billion valuation in 2021 after a proposed acquisition by Visa was abandoned in 2021 following US Department of Justice opposition. Plaid remains privately held.
- Founded
- 2013
Frequently asked questions
How much did Plaid pay for Cognito?
The purchase price was not disclosed. Neither Plaid nor Cognito released financial terms.
What does Cognito do?
Cognito provides identity verification tools including ID document scanning, biometric checks, and watchlist screening, primarily for fintech companies.
Why did Plaid acquire Cognito?
Plaid acquired Cognito to add identity verification to its bank account connectivity network, letting customers handle KYC compliance without a separate vendor.
When did the Plaid-Cognito deal close?
The deal was announced and closed on January 12, 2022.
Is Plaid publicly traded?
No. Plaid is privately held and was valued at $13.4 billion in a 2021 funding round.
How many customers did Cognito have at the time of the acquisition?
Cognito served more than 400 businesses at the time Plaid announced the deal.
Sources
- plaid.com /blog/plaid-acquires-cognito/