The agreement for IN Groupe to take over Nets’ digital ID business from Nexi Group has been finalized, making IN Group responsible for Danish digital identity service MitID’s development and operation.
The acquisition, announced near the end of last year, also includes Nets’ trust and broker services. IN Groupe will open two new offices in Denmark, and another in Oslo, Norway.
In Groupe is also in the midst of exclusive negotiations to acquire Idemia Smart Identity.
Between them, the completed and prospective deals represent a significant consolidation of Europe’s market for identity credentials.
“There is no doubt that we are well down the path to migrating government-issued physical identity documents to digital identity solutions,” notes Goode Intelligence CEO and Chief Analyst Alan Goode tells Biometric Update in an email. “This journey will include both physical identity documents and digital identity solutions coexisting. Identity suppliers, especially in the government sector, need to be able to operate in both the physical and digital worlds, including the support of hybrid models where physical identity document and digital identity issuance and management coexist. This strategy is being adopted by the major suppliers of government identity and is exemplified by the news that IN Groupe has made another identity acquisition.”
IN Groupe is positioned to play a leading role in the issuance of digital identities, which Goode Intelligence forecast in its second-edition Digital Identity Report will reach 4.9 billion in use by 2029.
“Our international expansion and the widening of our capabilities along the identity value chain will help us better serve new and existing customers,” says IN Groupe CEO Agnès Diallo.
While the formal ownership of MitID is not changing, IN Groupe says taking over its operation is a main reason for its acquisition of Nets. Diallo calls MitID “an extremely advanced and specialized eID technology,” and that collaborating with its owners “fits perfectly with our expertise and experience in delivering digital identity solutions, biometrics, cybersecurity, and digital verification services across Europe.”
“Not only is this a recurring business line for In Groupe but also a great opportunity for knowledge transfer, to exchange capabilities from MitID to other business lines within the IN Groupe,” Goode says. “This could be a very timely acquisition in the context of a ramp up of activity in digital identity within the EU with its digital identity initiatives including the EU Digital Identity Wallet and eIDAS 2. Through acquisition, IN Groupe is quickly becoming a major player in the European identity sector and potentially beyond.”
Article Topics
acquisitions | digital ID | Goode Intelligence | Idemia Smart Identity | IN Groupe | Nexi Group
