IDnow has signed off on a deal to buy Germany-based Wirecard Communications Services from Wirecard for an undisclosed sum.
The transaction is expected to enhance the service quality of the acquiror’s products and increase responsiveness, while reducing waiting times.
Following the acquisition, IDnow will retain the target’s headquarters in Leipzig and most of the company’s employees.
As a result, Wirecard Communication’s location will be expanded and integrated into the acquiror’s processes to enable faster development of projects, as well as further technical development of IDnow’s identification operations.
Established in 2003, the target is part of the Wirecard group, which provides digital payment services to customers across the retail, financial and travel and mobility industries, among others.
Wirecard Communication has already been working with the buyer for over five years and was offered for sale by way of an asset deal.
Andreas Bodczek, chief executive of IDnow, said: “With the integration of Wirecard Communication into the IDnow Group, we are seizing the opportunity to further improve our range and service quality for our customers.”
Backed by venture capital investors, including Corsair Capital and BayBG, the purchaser claims to be one of the leading providers of identity verification technology in Europe.
IDnow’s products include AutoIdent, which offers ID recognition software for a range of documents, such as passports, driver’s licences and ID cards, and helps businesses to prevent identity fraud.
Headquartered in Munich, the company has over 250 customers and operates sites in France and the UK.
IDnow’s clients include the likes of Commerzbank, UBS and Sixt neuwagen.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 2,902 deals targeting software publishers announced globally in 2020 to date.
In the joint-largest transaction, Aveva Group agreed to buy US-based OSIsoft for USD 5.00 billion. Insight Holdings Group also picked up Veeam Software Holding for the same amount.
Other companies targeted in this sector so far this year include Industrial & Financial Systems, naviHealth and Compuware.
© Zephus Ltd