Biometrics company Ideco Group aims to grow internationally, after the Competition Commission approved its takeover of Kroll Background Screening.
The company now owns 100% of Kroll, after having bought an initial stake of 30%, in 2007, from US-based Kroll Incorporated. Last year, the company bought the remaining 70% stake, and renamed the company Managed Integrity Evaluation (MIE).
However, before the deal could go through, a complaint was lodged with the commission. An industry competitor argued that the merger would prevent or reduce competition in the market.
Vhonani Mufamadi, CEO and chairman of the Ideco Group, explains that, although the commission had viewed the deal as a small merger, it had to investigate the complaint.
However, the competition authorities found the merger would not lessen competition, as there are other organisations that provide the same service as MIE, he says. “The Competition Commission decided the complaint was unfounded.”
Expanding offerings
identity management supplier and provides services, for example, to recruitment companies so that they can verify fingerprints with the South African Police Service to check whether candidates have criminal records.
Its service is an automated fingerprint verification process, which Mufamadi says eliminates the possibility of a candidate applying for a job with a stolen identity document. “We replace names and identification documents with fingerprints.”
Mufamadi says, while the company does not have an appetite for any more acquisitions at the moment, it does intend exploring other geographic markets. It is already providing services in the US and Europe, but is looking at expanding into Africa as well, he says.
Ideco has three business units: Ideco Technologies, AFISwitch and Ideco Biometric Security Solutions. It digitised the Department of Home Affairs' paper-based fingerprint records.
“We are very excited for the future of this business,” says MIE CEO Ina van der Merwe.
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