VASCO Data Security, Inc. (NASDAQ:VDSI), a global leader in digital
identity security, transaction security and business productivity,
today announced it has acquired privately-held Dealflo for £41
million in cash. In a separate press release today, VASCO
introduced its Trusted Identity (TID) platform and announced its
name is changing to OneSpan.
Dealflo is a rapidly growing and leading provider of identity
verification and end-to-end financial agreement automation
solutions. Its flexible workflow management system automates the
full lifecycle of customer onboarding by providing a flexible and
automated application process, integration of third-party identity
verification services, tailored and configurable contract
generation, e-signature capture and secure vaulting. Dealflo has
achieved significant success in providing onboarding solutions to
the consumer and asset financing sectors primarily in the U.K.
“The combination of two leading providers of solutions for
agreement automation creates a strong offering for customer
onboarding,” said Aite Group’s Retail Banking and Payments Research
Director, Julie Conroy. “Financial institutions in particular have
a growing demand for onboarding automation solutions and coming
from OneSpan, a leading provider in the financial services
industry, this will make for a very compelling offering in the
market.”
Dealflo’s agreement automation platform provides a flexible API
that facilities the integration of multiple third party solutions
for each step of the financial transaction management process.
Dealflo has partnerships with leading identity verification
providers Equifax, iovation (being acquired by TransUnion), Mitek,
and GB Group, as well as OneSpan Sign (formerly eSignLive). OneSpan
will continue to support these relationships and plans to increase
the number of e-sign partnerships as it expands Dealflo’s presence
globally.
“This acquisition will enable us to grow our subscription
revenue and Dealflo’s technology will be a major differentiator for
our eSignLive solution,” said VASCO CEO, Scott Clements. “In
addition, Dealflo’s identity verification capabilities will allow
us to accelerate the launch of our TID platform based onboarding,
identity and anti-fraud solutions.”
There are significant synergies between the companies. Dealflo
is headquartered in London with its development center in Montreal,
the home of OneSpan’s largest development center. In addition,
OneSpan Sign is already integrated into Dealflo’s platform and more
than half of Dealflo’s customers are also OneSpan’s, including
leading financial institutions and organizations such as 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,” stated Dealflo Founder and CEO, Abe Smith. “We
have a deep history with OneSpan Sign and look forward to working
together and expanding our integration into OneSpan’s powerful and
innovative Trusted Identity platform.”
2018 Guidance Update
As a result of the transaction, OneSpan has revised its guidance
for the full-year 2018 as follows:
- Revenue is expected to be in the range of $201 million to $211
million; and
- Adjusted EBITDA is expected to be in the range of $15 million
to $19 million.
Clements added, “While our revised guidance reflects the
near-term financial impact of acquiring an early-stage technology
platform, we see tremendous opportunity to leverage this strategic
addition and deliver significant long-term revenue and EBITDA
growth in the years to come.”
About OneSpan
OneSpan enables financial institutions and other organizations
to succeed by making bold advances in their digital transformation.
We do this by establishing trust in people’s identities, the
devices they use, and the transactions that shape their lives. We
believe that this is the foundation of enhanced business enablement
and growth. More than 10,000 customers, including over half of the
top 100 global banks, rely on OneSpan solutions to protect their
most important relationships and business processes. From digital
onboarding to fraud mitigation to workflow management, OneSpan’s
unified, open platform reduces costs, accelerates customer
acquisition, and increases customer satisfaction. Learn more about
OneSpan at OneSpan.com and on Twitter, LinkedIn and Facebook.
About Dealflo
Dealflo provides end-to-end financial agreement automation
services and processes billions of financial transactions annually
in a single service. Dealflo reduces risk and cost, increases
conversion and improves user experience by automating the entire
process. Dealflo users are protected by ensuring that all
agreements fully comply with the mandated process whether being
signed online, in a retail store or alongside an intermediary. It
increases enforceability with the strongest evidence available,
meaning less risk from a legal, compliance and financial
perspective. It has operations across North America and EMEA, and
is headquartered in London.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of applicable U.S. Securities laws, including
statements regarding the potential benefits, performance, and
functionality of our products and solutions; our expectations,
beliefs, plans, operations and strategies relating to our
acquisition of Dealflo; and our expectations regarding our
financial performance in the future. Forward-looking statements may
be identified by words such as "seek", "believe", "plan",
"estimate", "anticipate", expect", "intend", and statements that an
event or result "may", "will", "should", "could", or "might" occur
or be achieved and any other similar expressions. These
forward-looking statements involve risks and uncertainties, as well
as assumptions which, if they do not fully materialize or prove
incorrect, could cause our results to differ materially from those
expressed or implied by such forward-looking statements. Factors
that could materially affect our business and financial results
include, but are not limited to, market acceptance of our products
and solutions and competitors’ offerings, the potential effects of
technological changes, our ability to effectively identify,
purchase and integrate acquisitions, the execution of our
transformative strategy on a global scale and the increasing
frequency and sophistication of hacking attacks, as well as those
factors set forth in our Form 10K (and other forms) filed with the
Securities and Exchange Commission. Our SEC filings and other
important information can be found on the Investor Relations
section of our website at ir.vasco.com. We do not have any intent,
and disclaim any obligation, to update the forward-looking
information to reflect events that occur, circumstances that exist,
or changes in our expectations after the date of this press
release.
Investor contact:Joe MaxaDirector of Investor
Relations+1-612-247-8592joe.maxa@onespan.com
Media contact:Sarah Hanel Director of
Global Corporate Communications +1-312-871-1729
sarah.hanel@onespan.com
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