IDnow and Ariadnext combine biometrics portfolios in reported €50M deal
TechCrunch puts the deal at €50 million (US$59 million), based on sources that also claim IDnow is continuing its hunt for acquisition targets.
The tie-up allows the combined entity to offer a comprehensive identity verification platform with artificial intelligence and human-assisted technologies, suitable for online or point-of-sale applications. The services IDnow currently offers in Germany, France and the UK, and to international customers using identity verification across different jurisdictions and use cases, will be expanded, according to the announcement.
IDnow says use of its biometric video identification and esigning solutions increased by 200 percent over the past year, with the pandemic driving increasing digitization. The company expects its 2021 revenues to be three times its 2019 revenues. The company recently signed a deal to provide Audi with an identity verification service based on ID checks and face biometrics.
Ariadnext’s selfie biometrics, onboarding tools and digital identity solutions grew in usage by 130 percent over the past five years.
“This combination with ARIADNEXT is an important step towards our vision of building the pan-European leader for identity verification-as-a-service solutions,” states Andreas Bodczek, CEO of IDnow. “Identity verification saw a major turn towards digitalization over the past decade and this trend has been further accelerated by the pandemic. It is now critical for banks, insurers, mobility companies and others to shift towards safe, automated solutions. With ARIADNEXT, in addition to our recent acquisition of identity Trust Management AG, IDnow can provide our customers with an even broader suite of products through a single platform with a seamless user experience.”
Ariadnext’s teams in Rennes, Paris, Madrid, Bucharest, Iasi and Warsaw will be retained, along with the company’s over-125 employees.
“We are looking forward to joining a team of IDnow’s caliber, combining our experience and skills to work towards our shared vison of providing a pan-European secure and future-proof solution to customers,” says Ariadnext President Guillaume Despagne. “With a strong presence in Germany, France, the United Kingdom, Spain, Poland and Romania, our combined product portfolios create an unmatched platform for customers across the European market.”
TechCrunch also notes that the merger positions IDnow similarly to Onfido as a giant European biometric identity verification provider, but the latter has turned much of its focus to the U.S. market lately, ahead of a possible IPO in New York.
The deal is subject to the usual regulatory approvals.