Corsair Capital has taken full control of IDnow in a $295m (€273m) all-cash deal, marking one of Germany’s most significant fintech exits in recent years.

The transaction signals renewed momentum in the German M&A market, which has seen a slowdown since 2021.

The New York-based private equity firm, which initially acquired a 43% stake in IDnow in 2019, is increasing its ownership to 96%, with the potential for an additional 20% earnout based on future performance targets, according to sources close to the deal.

Founded in Munich in 2014, IDnow has expanded rapidly in recent years through acquisitions, including German identity verification provider Trust Management AG and French counterpart ARIADNEXT in 2021. The company serves 900 customers globally, providing digital identity verification solutions across various industries.

In 2023, IDnow reported €79m in revenue and achieved profitability on an EBITDA basis. The deal follows other major German tech exits, including Novartis’ €2.7bn acquisition of biotech firm MorphoSys and Novo Nordisk’s €1bn purchase of Cardior Pharmaceuticals.

This acquisition highlights private equity’s continued appetite for high-growth fintech and digital identity solutions, as firms seek to capitalize on regulatory demand and increasing digital security needs. Find out more about tech investments in private equity by joining Germany’s leading Private Equity Conference in Frankfurt.