Matica Fintec S.p.A. has agreed to acquire an initial 51 percent stake in Credence ID LLC, a biometric and digital identity provider based in Oakland, California. The structure gives Matica immediate control and allows it to consolidate Credence ID’s results within 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 cites Credence ID revenue of roughly 8 million U.S. dollars, with about 75 percent tied to biometrics for mobile identity use cases. The company reports operations in more than 30 countries, over 300 projects delivered, and more than 100,000 devices installed, and it cites partnerships with Google, Samsung, and Apple.
The transaction is set up in two phases. Phase 1 gives Matica 51 percent through an 8 million U.S. dollar investment, including 7.2 million dollars via a capital increase through newly issued equity and 800,000 dollars to purchase units from CID Holdco LLC, the holding entity described as owning 100 percent of Credence ID at signing. The Phase 1 terms include board majority rights, veto rights, and governance provisions supporting full consolidation within Matica’s group accounts.
Phase 2 provides for up to an additional 4 million U.S. dollars if Credence ID meets a minimum EBITDA threshold in 2026. If the threshold is met, Matica’s stake can rise to as much as 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 toward full ownership over time, alongside other provisions covering pre-emption rights, lock-up, transfer restrictions, and customary representations, warranties, and indemnities.
Matica said it plans to fund the first tranche through an arranged credit line with a banking syndicate that includes Banco BPM, Credit Agricole Italia, and Intesa Sanpaolo. Disclosed advisors include Fineurop Soditic as M&A advisor, Perkins Coie and Simmons & Simmons as legal advisors, and PwC for due diligence.
The move follows Credence ID’s recent expansion of its mobile driver’s license verification platform to support digital IDs from Ohio, New York, and Virginia, and its July entry to the MOSIP Marketplace as a qualified system integrator.
Sources: Matica Fintec, Teleborsa
—
By the Mobile ID World Editorial Team
