IDnow has agreed to acquire Wirecard Communication Services, retaining the Leipzig location and preserving the majority of its 150 employees.

With Wirecard Communication Services, IDnow will focus on providing identity services and continue to build additional capacity for growth.

In light of the added needs related to restrictons imposed by the COVID-19 pandemic, IDnow stated that it is experiencing a sharp increase in demand for its digital verification procedures. The acquisition is intended to enhance the service quality of IDnow products and increase the responsiveness for customers in order to cut waiting times.

Wirecard Communication Services was established in April 2003, part of the Wirecard Group. Due to the administration process of the wider group, in the aftermath of the recent accounting scandal, the various divisions were offered for sale by way of asset deals.

IDnow and Wirecard Communication Services had already been working together for more than five years.

Nils Freudenberg from Tiefenbacher Insolvency Administration announced the takeover, stating that the first step will be to provide employees with appropriate qualifications and to adapt the technical infrastructure. Following this realignment, the Leipzig location will be expanded and integrated into the IDnow processes.

"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," said Andreas Bodczek, chief executive of IDnow. "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."

Separately, Railsbank has confirmed its purchase of the technology and assets of Wirecard Card Solution, for an undisclosed amount.

Railsbank chief executive and co-founder Nigel Verdon stated: "The Railsbank team will conscientiously work on ensuring customers, programme managers and team members have a seamless transfer to their new home."

Wirecard said that “certain employees” would transfer over to Railsbank as part of the sale, while its customers would have their business moved across between now and November.

The remaining assets of Wirecard Card Services and employees not being transferred will go through an “orderly and solvent wind-down”.

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