Entrust, a provider of security services for payment cards, passwords, and access controls, has confirmed that it is in exclusive negotiations to acquire ID verification company Onfido.
Should the acquisition proceed, Entrust will integrate Onfido’s cloud-based, AI-powered identity verification technology into its existing portfolio. Founded in 1969, Entrust offers a range of digital security solutions, including identity, certificate, and hardware security module (HSM) services, which assist financial institutions in meeting compliance obligations for safeguarding customer accounts.
The acquisition of Onfido, which gained prominence during the COVID-19 pandemic as digital transactions surged, aims to enhance Entrust’s service offerings with modern AI capabilities. Onfido serves high-profile clients like Revolut and Expensify by validating users through photo ID verification matched against a selfie video, employing AI to detect fraudulent attempts. The company boasts over $130 million in annual recurring revenue, a workforce of more than 500 employees, and over 1,200 clients. Its most recent funding round occurred in 2020, securing $100 million led by TPG Growth.
Todd Wilkinson, president and CEO of Entrust, stated, “Onfido IDV solutions have proven their value in Europe’s high-compliance environment. With the proposed acquisition of Onfido, Entrust would have the opportunity to provide unmatched identity security solutions at a time when they are needed most among enterprises and institutions."
He emphasized the increasing global demand for robust identity assurance due to challenges like deepfakes and synthetic identities, which are vital for secure digital interactions in banking, finance, government, and travel. "Step-up authentication using biometric-based, AI-driven identity verification will be critical to ensuring security, privacy, and trust in these high-value digital-first interactions," Wilkinson added.
Market speculation suggests that Entrust has valued the potential acquisition at over $400 million.
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