Identity verification company IDnow has agreed to buy Wirecard Communication Services, a deal that will see IDnow retain the Leipzig location and keep most of its employees.
IDnow will use the acquisition to power the continuous growth of its identification processes.
Wirecard Communication Services was previously part of payment processor Wirecard, which filed for insolvency on June 25 after $2.1bn of its finances were revealed to be missing. The company then announced that the money may have never existed in the first place.
IDnow said that the combination of the worldwide adoption of digital services the restrictions imposed by the Covid-19 pandemic have created a sharp increase in demand for IDnow’s digital verification procedures.
As part of the acquisition, all Wirecard Communication Services’ staff members still on the payroll will be given appropriate qualifications and to adapt the technical infrastructure. Following this realignment, the Leipzig location will be expanded in a targeted way and integrated into the IDnow processes in order to enable even faster implementation of projects as well as further technical development of the Ident services.
“With the integration of Wirecard Communication Services into the IDnow Group, we are seizing the opportunity to further improve our range and service quality for our customers,” said Andreas Bodczek, CEO of IDnow.
“We have worked in close collaboration with this division of the company for several years and greatly appreciate the qualifications and experience of its employees. We are on a strong growth path and will maintain and further develop the Leipzig location.”
Amra Blume, managing director at Wirecard Communications Services, added, “We are delighted to have found in IDnow a buyer who appreciates and knows our company and has such a friendly culture. Personally, I am very pleased to stay on board and work in the team at IDnow.”
This marks the third deal in the last week that have seen Wirecard employees find a new home. FinTech Global has previously reported that some of Wirecard’s innovation team has joined FinTech builder finleap and that Railsbank has acquired Wirecard’s UK division.
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