Late yesterday, we heard the news that Onfido, a pioneer in ID verification used by banks and fintechs all over the world, is going to be acquired by Entrust, a diversified security and verification company.
It looks like someone leaked this deal because according to the press release from Entrust this morning, the terms are not yet finalized. There is no closing date yet but TechCrunch has learned that the purchase price is supposedly well over $400 million.
While Onfido has clients across different industries it really grew up alongside the fintech space as fintech companies were early adopters of AI and machine-readable verification tools.
For more color on Onfido, you can listen to my podcast with their founding CEO, Husayn Kassai, here and their current CEO, Mike Tuchen, here.
Anti-fraud and ID verification tools are in hot demand right now as every bank and fintech company wants to build a frictionless experience while at the same time catching as much fraud as possible.
There are going to be some very large companies created in this space and clearly, Entrust is looking to be one of the leaders here.
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Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.