idnow Acquires Ariadnext for $59 Million

IDnow Acquires ARIADNEXT to Expand European Identity Verification Capabilities

IDnow, a leading identity verification startup headquartered in Germany, has announced the acquisition of ARIADNEXT, a French company specializing in remote identity verification and the creation of digital identities.

While the financial details of the transaction remain undisclosed, sources indicate the deal is valued at approximately $59 million, or €50 million. It is understood that IDnow is actively pursuing further acquisitions to strengthen its market position.

A Comprehensive Identity Verification Platform

According to IDnow, the integration of ARIADNEXT will result in a more complete identity verification platform.

This expanded platform will encompass a wide range of technologies, including both AI-powered and human-assisted verification methods. It will also support verification across multiple channels, from online applications to in-person point-of-sale transactions.

IDnow currently serves clients in several key European markets, including the U.K., France, Germany, Spain, Poland, and Romania. The company anticipates a threefold increase in revenue in 2021 compared to 2019.

Increased Demand Driven by the Pandemic

The demand for IDnow’s services has surged significantly in recent times.

The startup reports a 200% increase in product usage compared to the previous year, driven by the accelerated shift towards digital processes among businesses.

Statements from Leadership

Andreas Bodczek, CEO of IDnow, stated: “This combination with ARIADNEXT represents a crucial step towards realizing our vision of establishing ourselves as the premier pan-European provider of identity verification-as-a-service solutions.”

He further added: “Alongside our recent acquisition of identity Trust Management AG, IDnow will now be able to offer customers an even more extensive product portfolio through a unified platform, ensuring a streamlined and user-friendly experience.”

Guillaume Despagne, president of ARIADNEXT, expressed his enthusiasm, saying: “We are eager to join the talented team at IDnow, combining our collective expertise and skills to advance our shared goal of delivering a secure and future-proof pan-European solution to our customers.”

Continued Operations and Future Growth

IDnow will maintain ARIADNEXT’s existing locations in Rennes, Paris, Madrid, Bucharest, Iasi, and Warsaw.

The company will also retain the over 125 employees currently working at ARIADNEXT. The acquisition is contingent upon receiving the necessary regulatory approvals.

Competitive Landscape

This acquisition positions IDnow as a major competitor to OnFido, another prominent player in the European identity verification market.

TechCrunch reports that IDnow has already exceeded €50 million in revenue this year and is on track to surpass its €100 million revenue target for 2023.