AI Web Accessibility UserWay Acquired by Level Access

AI Web Accessibility company, UserWay, reached an agreement to be acquired and taken private by Level Access for $98.7 million.

Listed on the Tel Aviv Stock Exchange (TASE) as UWAY, UserWay's shareholders are set to receive $21.06 per share. This figure represents a 22% premium over the company's average share price in the past thirty days. The acquisition has been approved by UserWay's Board of Directors and is pending shareholder approval.

The transaction, slated to close in early 2024, is subject to customary closing conditions, including regulatory approvals. Upon completion, UserWay will be delisted from TASE or any other public stock exchange. Allon Mason, the CEO of UserWay, will continue to lead the company and also take on the role of President at Level Access.

UserWay serves a long list of clients, helping them adhere to ADA law and conform to WCAG 2.1 & 2.2 guidelines, including companies like Ynet, Fiverr, and Payoneer.

While web accessibility might initially seem like a low priority for website operators, the financial implications of non-compliance can be significant. In 2023, there has been a marked increase in lawsuits against website owners for violating the Americans with Disabilities Act (ADA). Although the ADA does not explicitly mention websites, U.S. courts are increasingly interpreting the act to include digital spaces, thus making compliance a legal requirement as well as a moral one.

A 2023 report by UsableNET, a company specializing in accessibility solutions, revealed a significant increase in ADA-related lawsuits, particularly in the first half of the year. This trend emphasizes the growing necessity for accessible websites, as non-compliance can lead to costly legal disputes. Interestingly, even with the use of accessibility widgets and overlays from providers such as accessiBe, UserWay, and AudioEye, there were 414 lawsuits filed against companies employing these technologies. By the end of 2023, it is estimated that there will be over 4,200 ADA website lawsuits, nearly double the number from 2018.

In Israel, the AI web accessibility market includes several startups such as User1st, EqualWeb, Evinced, accessiBe, SenseIT, Allyable, and Equally AI. Evinced and accessiBe have raised a combined total of $103 million in funding from investors including Glilot Capital Partners, Insight Partners, and K1 Investment Management.