In a deal valued at “well above” $400 million, Entrust is set to acquire Onfido, a London-based identity verification startup. Entrust, a private company providing various certification and verification services, aims to integrate Onfido’s tools into its broader technology stack, establishing a leadership position across the identity lifecycle.
The acquisition comes as identity verification and certification technologies face growing challenges in the era of digital services, security concerns, and increased regulations.
The completion date remains pending regulatory approvals, with the deal currently in the “early and exclusive” negotiation stage. Todd Wilkinson highlighted the significance of incorporating AI-based tools like Onfido’s Atlas AI, noting the draw of AI in enhancing identity-related services.
Founded in 2012, gained prominence during the AI boom of the 2010s, securing investments from major players like TPG, Salesforce, and Microsoft. The COVID-19 pandemic further propelled its growth as the demand for digital identity verification tools surged. While facing the economic impact of the post-pandemic period, they have been informally seeking a buyer.
This acquisition aligns with the broader trend of consolidating point solutions on larger platforms. Wilkinson acknowledged the confusion in the market due to numerous players, emphasizing the opportunity for stable financial platforms to thrive in such an environment.
Mike Tuchen, CEO of Onfido, expressed excitement about entering discussions with Entrust, anticipating the expansion of access to advanced digital identity verification solutions. The integration of Onfido’s AI and machine learning-driven identity verification with Entrust’s identity security solutions aims to create a new realm of digital trust.
Note: The article covers the acquisition of Onfido by Entrust, highlighting the significance, market trends, and potential impacts on digital identity verification.