Matica Fintec S.p.A. has signed an agreement to acquire an initial 51 percent stake in Credence ID LLC, a provider of biometric and digital identity solutions based in Oakland, California. The deal is structured to give Matica immediate control and the ability to consolidate Credence ID’s results within its group financial statements.
Credence ID was founded in 2012 in the San Francisco Bay Area and positions itself around digital identity verification, mobile ID, and biometrics. Matica’s announcement cites Credence ID revenue of approximately 8 million U.S. dollars, with about 75 percent attributed to biometrics for mobile identity use cases. Credence ID also reports operating in more than 30 countries, with over 300 projects delivered and more than 100,000 devices installed. The company cites partnerships with Google, Samsung, and Apple.
The transaction is structured in two phases. Under Phase 1, Matica will acquire 51 percent through an 8 million U.S. dollar investment, consisting of 7.2 million dollars via a capital increase through subscription to newly issued equity and 800,000 dollars used to purchase units from CID Holdco LLC, the holding entity described as owning 100 percent of Credence ID at signing. Phase 1 terms provide Matica with board majority rights, specific veto rights, and governance provisions that support full consolidation of Credence ID within Matica’s group accounts.
Phase 2 provides for up to an additional 4 million U.S. dollars, conditional on Credence ID meeting a minimum EBITDA threshold in 2026. If the threshold is met, Matica’s stake can increase up to 55 percent under a contractual formula. If it is not met, the second tranche is not due and Matica remains at 51 percent.
The agreement also includes put and call options exercisable from 2029 that could enable Matica to progress to full ownership over time, alongside other deal provisions covering matters such as pre-emption rights, lock-up, transfer restrictions, and customary representations, warranties, and indemnities.
Matica said it plans to finance the first tranche through an arranged credit line with a banking syndicate that includes Banco BPM, Credit Agricole Italia, and Intesa Sanpaolo. Advisors disclosed include Fineurop Soditic as M&A advisor, Perkins Coie and Simmons & Simmons as legal advisors, and PwC for due diligence.
The move comes after Credence ID’s expansion of its mobile driver’s license verification platform to support digital IDs from Ohio, New York, and Virginia in 2024, and after it joined the MOSIP Marketplace as a qualified system integrator in July of this year.
Sources: Matica Fintec, Teleborsa
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By the ID Tech Editorial Team
