ID card specialist Digital ID has been acquired by US-based AlphaCard Systems in a seven-figure deal that will generate transatlantic advantages for both businesses.
The deal for Stockport-based Digital ID was finalised on 10 August after a three-month negotiation period that began with an introduction at a networking event hosted by a supplier to both companies.
Digital ID supplies machinery and software for clients to print their own ID cards in-house, alongside providing printing and personalisation in its own print bureau. It employs 60 staff.
According to AlphaCard, the acquisition makes the company, headquartered in Portland, Oregon, the largest ID card company in the world, with 360 staff and sites in 11 cities across the globe.
“All of this has happened very quickly and poses a lot of advantages for both companies,” said Digital ID digital marketing manager Adam Bennett. “AlphaCard has its own range of ID card printers and was looking to move more prominently into the software side.
“With our own software system and mobile application EasyBadge, we represented an opportunity for them as much as they did for us. We benefit by increasing the automation and efficiency of many of our systems.
“Through AlphaCard, we will be able to expand while also looking at markets such as access control and security. Day-to-day, nothing will change for Digital ID, but we will be able to run things a lot smoother, allowing us the room to grow.”
Digital ID expects the deal to enable it to create an additional 40 jobs, taking headcount to 100 by 2021. It will retain its own brand identity.
AlphaCard will start promoting EasyBadge, which enables users to create ID cards via smartphone, in the US following the acquisition.
Digital ID hopes to achieve a turnover of £22m by the end of the year, representing organic growth of 20% over 2018. Its print bureau runs a number of ID card printing machines, including a Fargo HDP5000 re-transfer printer and IDP Smart 70.
It also has premises in Hull and London. Late last year, it acquired Hove-based Smart Card Store.