Entrust, a provider of security services for payment cards, passwords and access controls, has confirmed that it has entered exclusive negotiations to acquire ID verification outfit Onfido.
If the acquisition goes ahead, Entrust would add Onfido’s cloud-based, artificial intelligence (AI)-powered identity verification (IDV) technology to Entrust’s existing portfolio.
Founded in 1969, privately-owned Entrust's digital security portfolio includes identity, certificate, and HSM solutions that help financial institutions meet compliance obligations for protecting customer accounts.
The acqusition of Onfido, which saw its star shine during the heights of the Covid pandemic as more transactions went digital, would provide a modern AI undercarriage to bolster Entrust's suite of services.
Onfido is used by the likes of Revolut and Expensify to help identify users by analysing their photo ID and then matching it against a selfie video, using AI to catch fakes. The company has over $130 million in annually recurring revenue (ARR), more than 500 employees, and over 1200 clients. The firm's last public fundraise was in 2020 when it picked up $100 million in a round led by TPG Growth.
Todd Wilkinson, president andd CEO of Entrust, says: “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.
"Deepfakes and synthetic identity are driving a global need for a powerful level of identity assurance that facilitates crucial digital journeys in banking, finance, government, travel, and more. 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.”
Market rumour has it that Entrust has put a $400 million+ valuation on any potential acquisition.
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