Authada signs a strategic agreement with Tinexta Group thereby expanding its Digital Trust presence to Germany
InfoCert, a subsidiary of the Tinexta Group, acquires a 16.7 percent stake in Authada. The agreement defines the terms of commercial collaboration and the technical strategies that InfoCert and Authada will implement. These include the expansion of InfoCert’s presence in the strategic DACH sector, the joint project to create a European Champion of Digital Trust Services, and options to enable InfoCert to acquire 100% of Authada under certain conditions.
Authada GmbH, a portfolio company of Frankfurt-based FinLab AG (ISIN: DE0001218063; Ticker: A7A.GR), and Tinexta SpA. announced last week the signing of a strategic agreement between Tinexta’s subsidiary InfoCert, the largest European Certification Authority, and Authada GmbH, a German Digital Identity Provider with cutting edge technology, based in Darmstadt, Germany.
Authada is active in the financial, telecommunications and sports betting markets — with well-known customers such as Vodafone, Comdirect (Commerzbank Group) and Sparkassenfinanzgruppe — and is currently expanding into the insurance, eCommerce and eHealth sectors. Authada was previously financed by FinLab AG, a listed investment company, and Main Incubator GmbH, early-stage investor and research and development unit of the Commerzbank Group.
The agreement signed defines the terms of a strategic collaboration between InfoCert and Authada, including the localization of InfoCert’s leading Digital Enterprise Solutions for the German Market and their integration with Authada’s advanced eID identification solution.
Certified by the BSI (Bundesamt für Sicherheit in der Informationstechnik, the German Federal Office for Information Security), the advanced Authada APP is the only privately-owned technology permitted to instantaneously read data stored on German electronic identity cards. Such cards, already used by over 90% of the population in Germany, will arrive at complete national coverage by the end of 2020.
Tinexta’s CEO, Pier Andrea Chevallard commented: “This strategic partnership with Authada has exceptional potential to expand to significant mutual benefit over the next three years. The German market is central to our plans to expand our Digital Trust business. Moreover, the technological assets of Authada will greatly enrich Tinexta’s offer and enable cross European commercial expansion.”
Infocert’s CEO, Danilo Cattaneo highlighted: “The entry of Authada into Tinexta Group represents another important expansion of InfoCert’s footprint into the strategic DACH area. The operation signed today will also allow us to offer, anywhere in the 20 countries where we are present, a wider set of innovative technological capabilities that will further enhance digital service security for citizens, companies and institutions. This transaction with Authada allows us to advance the creation of an European Champion of Digital Trust Services, to manage sensitive data of citizens, companies and institutions in full compliance with European regulations.”
Authada’s CEO and Co-Founder, Andreas Plies said: “We are pleased about the partnership with InfoCert and the resulting strategic benefits. It allows us to combine the highly innovative and technologically leading solutions of both companies and thus create a unique service offering for the national and international markets.”
FinLab’s Board Member Stefan Schütze said: “As the first institutional investor in and supporter of Authada, we are very pleased to welcome on board InfoCert and Tinexta Group to Authada as strategic partner. It’s a perfect match and not only InfoCert and Authada will benefit greatly from this cooperation, but also their customers!”
The strategic agreement foresees the following:
- Authada’s current shareholders have committed to undertaking a capital increase;
- InfoCert is participating as lead investor in this capital increase and has paid a modest seven-figure consideration in exchange for a 16.67% participation in the form of special shares that guarantee certain preferential rights;
- Finally, InfoCert has been granted call options that may be exercised following the approval of 2021 and 2022 results that will permit to arrive at 100% control of Authada, given certain conditions.
An Advisory Board will be constituted, which will be made up of representatives of Authada management, FinLab and InfoCert, that will meet periodically to review and approve all major decisions within Authada.
Authada is a cybersecurity company based in Darmstadt, Germany. The identification solutions of AUTHADA are based on the eID functionality of the German electronic identity card and the electronic residence permit. Using an NFC-capable smartphone, persons are identified within seconds remotely or on site.
Legally secure based on German and EU legislation, as well as technically secure due to the certification by the German Federal Office for Information Security (BSI). With its eID services, AUTHADA thus offers a leading technology that is already being used by well-known customers. Since March 2020, AUTHADA is also a certified identification service provider, which allows digital identification in all markets. In addition, AUTHADA is an ISO/IEC 27001 certified company.
This international standard for information security ensures that AUTHADA complies with extensive information security requirements and implements comprehensive measures for data protection.
Authada signs a strategic agreement with Tinexta Group thereby expanding its Digital Trust… was originally published in FrankfurtValley on Medium, where people are continuing the conversation by highlighting and responding to this story.