LONDON, UK: Onfido, a UK-based fintech company that provides identity verification solutions using artificial intelligence and machine learning, is in exclusive negotiations with Entrust, a US-based company that specializes in payments, identities and data security, for a possible acquisition.
The deal, if finalized, would be the sixth exit for Augmentum Fintech, Europe’s leading publicly listed fintech fund and one of the early investors in Onfido.
Augmentum Fintech said in a statement that it expects the proceeds from the sale to be at or slightly above the current holding value of its Onfido stake, which was £9.7 million as of 30 September 2023, representing 3.6% of its portfolio.
Augmentum Fintech first invested £4 million in Onfido in 2018 and followed up with another £3.7 million in 2019.
The fund said it supports Onfido’s decision to explore a strategic partnership with Entrust, which it believes would create a global leader in the identity verification market.
The transaction is subject to regulatory approval and other customary closing conditions, according to the statement.
Augmentum Fintech added that it invests in fast growing fintech businesses that are disrupting the financial services sector, and that it is the UK’s only publicly listed investment company focusing on the fintech sector in the UK and wider Europe.
Onfido is a technology company that helps businesses verify people’s identities using a photo-based identity document, a selfie, and artificial intelligence algorithms.
Founded in 2012, Onfido has grown to over 600 employees, with 11 offices and 1,100+ clients worldwide.
Their mission is to create trust during customer onboarding and beyond by providing a complete, AI-powered digital identity solution.
Onfido’s platform enables businesses to verify customer identities online. It automates identity verification, fraud detection, and compliance processes, allowing companies to acquire new customers while meeting global KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements.
Entrust helps organizations accelerate growth, protect assets, and build trust in digital interactions. Their portfolio includes solutions for identity management, data security, and secure digital journeys. They serve a range of industries, including financial, government, and enterprise.
It assists with account opening and onboarding processes, ensuring secure and seamless experiences for customers and citizens.
The company has issued more than 20 billion payment cards over the past five decades, contributing to secure financial transactions.
It enables users with unified digital credentials and digital signing capabilities, ensuring the integrity of digital interactions.
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