Vasco Data Security has purchased customer onboarding provider Dealflo for nearly $55 million and changed its name to OneSpan to reflect the importance of the company's new Trusted Identity platform.
The Chicago-based vendor said London-based Dealfo's workflow management system automates the customer onboarding lifecycle by providing a flexible application process, integrated third-party identity verification services, configurable contract generation, e-signature capture, and secure vaulting, according to OneSpan.
"This acquisition will enable us to grow our subscription revenue," OneSpan CEO Scott Clements said in a statement. "In addition, Dealflo's identity verification capabilities will allow us to accelerate the launch of our TID [Trusted Identity] platform based onboarding, identity and anti-fraud solutions."
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OneSpan paid $54.5 million to acquire Dealflo, and as a result of the deal, has increased its full-year 2018 revenue guidance by $4 million -- to between $201 million and $211 million -- and decreased its adjusted EBITDA guidance by $6 million -- to between $15 million and $19 million. More than half of Dealflo's customers are also OneSpan's, including BMW, Santander, BNP Paribas, and Mercedes Benz.
"The entire Dealflo team is thrilled that we are joining a leader in the financial services segment that can accelerate growth of our solution and expand into new regions where OneSpan is very well-established," Dealflo Founder and CEO Abe Smith said in a statement.
Dealflo's automation platform provides a flexible API that facilitates the integration of multiple third-party solutions for each step of the financial transaction management process, according to OneSpan. OneSpan Sign is already integrated with Dealflo, and the company plans to increase the number of e-sign partnerships as it expands Dealflo's presence globally.
Dealflo was founded in 2009 and employs approximately 75 people, according to LinkedIn. Dealflo has raised nearly $16 million in two rounds of outside funding, according to CrunchBase, with some $13.3 million of that money coming in February 2017 in a round led by German venture capital firm HV Holtzbrinck Ventures.
Vasco stock is up $1.25 or about 6 percent to $21.95 in trading Wednesday, marking its highest trading price since July 2015. The firm will begin trading Monday on the Nasdaq stock exchange under the new OneSpan name and ticker symbol "OSPN." OneSpan executives weren't immediately available for additional comment.
The Trusted Identity platform provides companies with a single platform to reduce onboarding and transaction-related fraud while securing and enhancing the end-user experience. The platform enables real-time fraud detection for banks and enterprises by using fraud analytics, multifactor authentication, mobile application security, and orchestration of all the available services, according to the company.
OneSpan also rolled out an Intelligent Adaptive Authentication offering on the TID platform. The offering reviews data from user behavior, devices, mobile applications and real-time transactions, and then uses artificial intelligence, machine learning, and customizable rule sets to analyze and score that data.
"The launch of our Trusted Identity platform provides a single foundation that spans the needs of our customers today and into the future, while our name change underscores a generational evolution in our strategy," Clements said in a statement.
The company has operated under the Vasco moniker since being founded 27 years ago, and has been traded on the Nasdaq for more than 18 years. Prior to the Dealflo purchase, the company had made a dozen acquisitions, with the most recent deal coming in November 2015 when Vasco bought e-signature provider eSignLive for $85 million.
The company's embrace of solution providers has occurred more recently, with Vasco establishing a North American channel program in 2015 and hiring ex-Invincea global channel chief Eddie DeWolfe to manage North American partners, according to CRN's 2018 Partner Program Guide.