Identity verification firm Onfido, known for its cutting-edge artificial intelligence (AI) solutions, is being acquired by Entrust, a company specializing in secure access and certification services. The deal, which sources state is valued at over $400 million, is currently going through regulatory approvals. The acquisition marks a significant step for Entrust as it aims to bolster its identity management capabilities with advanced AI technology.
With no fixed completion date due to ongoing negotiations, Entrust plans to integrate Onfido’s AI-driven tools, such as their Atlas AI system, into its extensive service portfolio. Entrust, boasting nearly a billion dollars in annual revenue and a wide customer base spanning governments and major financial institutions, looks to enhance its market position with this strategic acquisition.
Founded by Husayn Kassai and co-founders Eamon Jubbawy and Ruhul Amin, Onfido saw significant growth, especially during the COVID-19 pandemic when the need for digital identity verification surged. Despite the post-pandemic market adjustment impacting many tech companies, including Onfido, Entrust saw the potential in the startup and proceeded with acquisition plans. This move aligns with the broader industry trend of consolidating specialized solutions into larger integrated platforms, offering end-users a more coherent and powerful set of tools in the ever-important realm of identity security.
FAQ
Why is Entrust acquiring Onfido?
Entrust is acquiring Onfido to enhance its identity management portfolio with state-of-the-art AI-based tools for identity verification, tapping into Onfido’s expertise in the field and addressing the growing market need for advanced security solutions.
How much is the acquisition worth?
While the exact figure is not disclosed, sources have indicated that the deal is valued at “well above” $400 million.
When will the acquisition be completed?
The acquisition does not have a set completion date as it is currently under regulatory review and negotiations are described as “early and exclusive.”
What changes can customers expect from this acquisition?
Customers can anticipate an expanded range of identity verification and security services, as Onfido’s solutions are set to be integrated into Entrust’s existing technology infrastructure.
Conclusion
The impending acquisition of Onfido by Entrust signals a significant shake-up in the realm of identity verification and digital trust. With its deep pockets, long-standing reputation, and vast customer base, Entrust is strategically positioned to utilize Onfido’s AI capabilities to meet contemporary security challenges head-on. As both companies continue to navigate regulatory approvals, the tech industry anticipates the fruitful outcomes of this union — set at the crossroads of traditional security services and next-generation AI innovations.