Confirmed: Entrust is buying AI-based ID verification startup Onfido, sources say for more than $400M

Hey there! I’ve got an interesting update for you. According to insider sources, it seems that Entrust is all set to make a big move by acquiring Onfido, a cutting-edge startup that specializes in AI-based ID verification. And guess what? The deal is reportedly worth more than a whopping $400 million! Exciting, isn’t it?

Image of silhouettes in shades of green with some marked with targets to represent facial recognition technology.

Image Credits: FotografiaBasica (opens in a new window)/ Getty Images

Entrust, a privately held company providing certification and verification services, is reportedly in early and exclusive negotiations to acquire Onfido, a leading identity verification provider that uses computer vision and AI tools. The acquisition is speculated to be valued “well above” $400 million and is still subject to regulatory approvals. Upon completion, Onfido’s tools will be integrated into Entrust’s technology stack, which is strategically aimed at establishing a leadership position in the identity lifecycle.

The acquisition is largely driven by Entrust’s emphasis on incorporating AI-based tools, particularly Onfido’s Atlas AI, into its technology stack. Although the financial terms of the deal remain undisclosed, Entrust is a profitable company with just under $1 billion in annual revenue and approximately 10,000 customers worldwide. The acquisition aligns with the increasing importance of AI in identity verification and data protection challenges.

Founded in 2012 by Husayn Kassai, Onfido garnered significant funding from prominent investors, including TPG, Salesforce, and Microsoft. The acquisition by Entrust is particularly strategic in the current tech landscape as Onfido has informally been seeking a buyer in recent years, following the post-pandemic economic downturn. 

The acquisition reflects an industry-wide trend of consolidating point solutions on larger platforms, streamlining the landscape for end-users. Despite the market complexity, companies with stable financial platforms, like Entrust, have thrived in this environment, providing advanced solutions in the evolving tech landscape. The addition of AI capabilities through the acquisition will enable Entrust to more effectively address security concerns and data breaches, particularly in sensitive sectors like government and financial services, where Entrust has a strong presence.

The acquisition highlights the critical role played by AI in digital identity verification and emphasizes the need for robust solutions in the face of ever-growing cybersecurity threats. Onfido’s CEO, Mike Tuchen, expressed excitement about the acquisition and the potential expansion of access to advanced digital identity verification solutions through discussions with Entrust. He further highlighted the transformative impact on digital trust enabled by Onfido’s AI and machine learning-driven identity verification alongside Entrust’s proven identity security solutions.

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