G+D secures U.S. federal identity foothold through XTec acquisition

Munich-based Giesecke+Devrient (G+D) has acquired XTec Incorporated, a Miami-based provider of secure authentication solutions, in a strategic expansion into the U.S. public sector identity market that the company describes as “a decisive step” in G+D’s international growth strategy.

XTec will be integrated into the portfolio of Veridos, the joint venture between G+D and the German federal technology group Bundesdruckerei. Its tools will put Veridos in an elite tier of providers approved to operate at “the highest level of trust required by U.S. government agencies.”

XTec, which specializes in identity verification, authentication, validation, authorization and access management for highly regulated environments, is certified for systems handling highly sensitive U.S. government data. Its XTec portfolio includes the only Identity and Credential Management ecosystem authorized at the High Impact level by the Federal Risk and Authorization Management Program (FedRAMP), which defines security standards for U.S. cloud services.

“High Impact” is the highest security category and applies to systems wherein “loss or compromise would have severe consequences for national security, public services, or trust in government institutions.”

By incorporating XTec’s authorized cloud platform, G+D “significantly expands its ability to support federal-grade digital identity, cryptographic credential issuance, and authentication services.” XTec also brings an experienced team and established relationships that deepen G+D’s reach within key government agencies.

Ralf Wintergerst, group CEO of G+D, says the firm is “delighted to announce this significant milestone in our SecurityTech growth story, which marks a strategic expansion of our presence in the U.S.”

“This acquisition is a major stride in a vital market for G+D, strengthening our digital identity business for the long term.”

The transaction closed on February 27. Financial terms have not been disclosed.

Article Topics

acquisitions  |  biometrics  |  digital identity  |  Giesecke & Devrient (G+D)  |  identity verification  |  Veridos  |  XTec