IDnow, a Munich-based identity verification provider, has announced the acquisition of Wirecard Communication Services GmBH, the Leipzig-based subsidiary of the Wirecard Group, in an asset deal today.
This came as the Wirecard Group entered into insolvency following the missing €1.9 billion from its books. The top executives, including its former long-running CEO, Marcus Braun, of the German fintech company are now facing litigation for their alleged involvement in cooking the books.
The company cited a sharp increase in demand for its products as the reason behind this acquisition. With Wirecard assets, IDnow is planning to enhance the service quality of its products, by increasing its response to customers
“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,” IDnow CEO Andreas Bodczek said in a statement.
IDnow was also a client of Wirecard for more than five years.
“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,” Bodczek added.
The new owner of the Wirecard subsidiary will retain the majority of the 150 employees working at the Leipzig office.
The collapse of the parent company also put other global subsidiaries of the fintech organisation up for grabs. Railsbank agreed to acquire the UK business of the collapsed fintech, and while many potential buyers also lined up to acquire its Asian and North American subsidiaries.
“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,” Amra Blume, managing director of Wirecard Communications Services, said.