IDnow has signed an agreement to acquire Wirecard Communication Services GmbH. Both companies are based in Germany, with the former operating out of Munich and the latter with premises in Leipzig.
Wirecard Communication Services is part of the broader Wirecard Group, and was made available as an asset deal as part of a structured investor process. The company was established in 2003 and has had a business relationship with IDnow for the past five years, although the acquisition will obviously be a more permanent arrangement.
IDnow is hoping that the acquisition will allow it to meet the growing demand for its selfie authentication services. The company recently revealed that transaction volumes on its selfie-based AutoIdent platform jumped an astonishing 1000 percent in the first six months of 2020, after previously noting that COVID-19 has created a need for secure mobile authentication options as people have transitioned to a remote ecosystem during the pandemic.
With that in mind, IDnow plans to integrate Wirecard Communication Services into its own operations. The Leipzig office will remain open, and the majority of its 150 employees will be onboarded into IDnow’s technical infrastructure. Once the transition is complete, the Leipzig office will expand to speed up the development and deployment of new Ident products.
“With the integration of Wirecard Communication Services, we are seizing the opportunity to further improve our range and service quality for our customers,” said IDnow CEO Andreas Bodczek. “We have worked in close collaboration with this division of the company for several years and greatly appreciate the qualifications and experience of its employees.”
IDnow has the backing of Corsair Capital, BayBG, Seventure Partner, and G+D Ventures as venture capital investors, as well as the support of an unnamed consortium of business angels. The company has entered talks with the UK government to potentially provide COVID-19 immunity credentials.