Munich-based IDnow, an identity verification platform provider, announced that it has been acquired by the New York-based private equity firm Corsair Capital for an all-cash deal of $295M (approximately €273M).
With this transaction, Corsair will acquire a majority stake in the Company from existing shareholders.
The US equity firm, which owned 43 per cent of IDnow since 2019, will now buy 96 per cent of the shares. The founders also can earn an additional 20 per cent based on the company’s future performance, reports Sifted.
Based out of New York, Corsair is a specialist investment firm offering opportunities for investors and solutions for companies across its private markets Buyouts, and Infrastructure businesses.
The firm has invested $13.6B in capital across buyouts and infrastructure since inception.
Raja Hadji-Touma and Edward Wertheim, Partners at Corsair. “Since our initial investment, we’ve witnessed IDnow build significant momentum and achieve impressive scale. We are excited by the opportunity to deepen our partnership with IDnow’s talented management team, and we look forward to supporting their next chapter of innovation and growth.”
Corsair invested in IDnow for the first time in October 2019 by buying a minority stake.
With this latest deal, Corsair wants to help IDnow grow faster and establish itself as a top European company.
It includes offering a full range of solutions and maintaining strong positions in various markets, while also planning for more acquisitions to increase its size and reach.
IDnow: Identity verification platform provider
Founded in 2014 by Armin Bauer, Dennis von Ferenczy, Felix Haas, and Sebastian Baerhold, IDnow aims to make the connected world a safer place with its Identity Verification-as-a-Service platform.
The company provides a broad portfolio of identity verification solutions, ranging from automated to human-assisted from purely online to point-of-sale, each of them optimised for user conversion rates and security.
“Since our founding a decade ago, IDnow has become a market leader in identity verification in Germany and France. During this time, we have achieved significant success in delivering strong results and growing our customer base, and with today’s announcement we aim to solidify our commitment to positioning the Company for future success,” says, IDnow CEO Andreas Bodczek.
“Corsair’s increased investment underscores their confidence in our vision and speaks to the synergies we have achieved through our collaborative relationship. With this deeper partnership, we can continue to transform and ensure our platform continues to evolve,” adds Bodczek.
The company works with international clients and spans a wide range of end markets including financial services, telecommunications, travel & mobility, gaming, and other industries.
In 2021, the German company acquired the French market leader for identity technology, ARIADNEXT, and the German Identity Trust Management AG.
“Building IDnow has been an incredible journey over the past 10 years together with Armin Berghaus, Dennis von Ferenczy, and Sebastian Baerhold, and we believe today’s announcement enables us to strengthen our capabilities and capitalize on the vast market opportunity available to us,” says Felix Haas, Executive Chairman and Co-Founder of IDnow.
“Corsair’s resources and expertise will help accelerate growth and unlock new opportunities for the Company and I’m confident this partnership will drive progress and expansion in ways that will benefit IDnow, its customers, and the industry as a whole,” adds Haas.
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