Before this, Corsair acquired a 43% minority stake in IDnow in 2019, with the company now gaining 96% of the shares, according to sources cited by Sifted. The deal supports Germany’s M&A market, which has been silent since 2021 due to challenging economic circumstances. With this move, IDnow’s founders could benefit from a 20% earnout from the additional payments made to the sellers, considering the performance of the business sold if future objectives are met.
Commenting on the news, representatives from IDnow mentioned that Corsair’s investment underlines the latter’s trust in IDnow’s capabilities and highlights the synergies that the two companies achieved through their collaborative agreement. By deepening their partnership, IDnow and Corsair intend to continue to advance the capabilities of the former’s platform and allow it to evolve to meet the needs, demands, and preferences of users.
Furthermore, Corsair aims to support IDnow’s development while also solidifying its features and capitalising on the market opportunity available to the private equity firm. When the two companies first joined forces in 2019, Corsair Capital provided IDnow with a USD 40 million growth equity investment, with the funds being set to assist the identity verification provider in expanding its product range and capturing scaled market share throughout Europe. At that time, the company planned to open additional offices in France and the UK.
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