US payments business Entrust is in “early” stage talks to acquire London-based identity verification scaleup Onfido.
The deal would see Entrust add Onfido’s identity verification tools, which scan biometrics and documents, into its portfolio.
The companies did not disclose the terms of the deal, which is subject to regulatory approval.
Onfido founder and former CEO Husayn Kassai told Sifted that all of the startup’s backers are set to make a profit on their investment.
Onfido’s investors include Salesforce’s venture capital arm and the University of Oxford.
Founded in 2012, Onfido uses AI to verify online identities in subsectors including finance and ecommerce. Its customers include Revolut and Orange.
“With the emergence of AI-based attacks, the identity verification game has changed,” said Todd Wilkinson, president and chief executive officer of Entrust.
“Deepfakes and synthetic identity are driving a global need for a powerful level of identity assurance that facilitates crucial digital journeys in banking, finance, government, travel, and more. Step-up authentication using biometric-based, AI-driven identity verification will be critical to ensuring security, privacy, and trust in these high-value digital-first interactions.”
Onfido reported an operating loss of £70m for the year ended 31 January 2023, according to Companies House filings. Its revenues came in at £102m for the same period, up from £95m the year prior.
“Digital identities are enabling new levels of simplicity and access for people across the globe,” said Mike Tuchen, CEO of Onfido. “The potential of Onfido’s powerful AI and machine learning-driven identity verification and Entrust’s proven identity security solutions would make a new world of digital trust possible.”