IDnow, a German-based identity verification startup is acquiring ARIADNEXT, a French equivalent, specializing in remote identity verification and digital identity creation. A price was not released by either party but TechCrunch understands from sources that the deal was approximately $59 million/€50 million. Sources say IDnow is looking to do similar acquisitions.
IDnow says the combined entity will be able to provide a comprehensive identity verification platform, ranging from AI-driven to human-assisted technology and from online to point-of-sale verification options. IDnow offers its services in the U.K., France, Germany, Spain, Poland, Romania and other international markets, and says it expects to increase revenue 3x in 2021 versus 2019.
The startup also says the pandemic has meant usage of its products has gone up 200% more compared to last year as companies switch to digital processes.
Andreas Bodczek, CEO of IDnow said in a statement: “This combination with ARIADNEXT is an important step toward our vision of building the pan-European leader for identity verification-as-a-service 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.”
Guillaume Despagne, president of ARIADNEXT, said: “We are looking forward to joining a team of IDnow’s caliber, combining our experience and skills to work toward our shared vision of providing a pan-European secure and future-proof solution to customers.
IDnow will retain ARIADNEXT’s locations in Rennes, Paris, Madrid, Bucharest, Iasi and Warsaw, as well as its over 125 employees. The acquisition is subject to regulatory approvals.
The acquisition means IDNow is now on a par with the other large player in Europe, OnFido. TechCrunch understands the company has done €50 million+ revenue this year and expects to over-perform its €100 million revenue target for 2023.