Italian fintech Matica acquiring Credence ID in deal worth up to $12M

Oakland, California-based mobile biometrics and digital ID technology provider Credence ID is joining up with Italy-based Matica Fintec S.p.A., through a deal that could reach $12 million.

Matica is best-known in the identity world for acquiring Panini in September, which added to its payment capabilities and added biometric identity verification software and an American market presence. Credence expands that market presence and gives Matica a portfolio of mobile biometric devices and software for mobile driver’s license (mDL) verification.

“This transaction represents a key milestone in our Group’s growth in the global digital identity market,” says Sandro Camilleri, Chairman and CEO of Matica Fintec. “The addition of Credence ID allows us to add a valuable addition to our ecosystem, enabling us to offer identity solutions worldwide, from physical issuance to mobile and digital IDs. We are confident that this partnership will significantly contribute to the Group’s evolution and the creation of value for customers, partners, and stakeholders.”

Credence also gives Matica a MOSIP Technology Partner and System Integrator, from which it can participate in national digital ID projects built on the open-source platform.

The payments and identity issuance fintech will pay $8 million to acquire 51 percent of Credence. Out of that total, $7.2 million is coming from a capital increase subscription, and $800,000 from the purchase of shares owned by Credence holding company CID Holdco.

The agreement is described in the announcement as “an initial phase” of two. Matica gets a majority of seats on Credence’s board of directors, specific veto rights and the ability to consolidate the biometrics provider’s results with the group’s financial statements. Phase two is expected to include a further investment of up to $4 million, based on minimum EBITDA results in 2026.

That subsequent investment could push Matica’s ownership stake to 55 percent.

Credence has revenues of roughly $8 million, three-quarters of which come from its mobile biometrics business. The company’s proprietary technologies to support mobile digital identity was attractive to Matica, along with its geographical market reach and customer portfolio, according to an announcement from the acquiring company.

Matica stock is traded on the Euronext Growth Milan exchange.

Article Topics

acquisitions  |  biometrics  |  Credence ID  |  digital ID  |  Matica Fintec