Crossword Cybersecurity PLC (LON:CCS) said it has acquired Verifiable Credentials Ltd (VCL), a provider of the Identiproof digital certification and documentation technology, for up to £2.75mln.
Under the deal, the AIM-listed firm said the purchase will consist of an initial payment of £100,000 in cash and £300,000 in shares, followed by £100,000 in shares payable on achievement of the first VCL commercial licence deal with the UK’s National Health Service or another UK government organisation.
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Up to £750,000 in stock is then payable on the first anniversary of the transaction on a straight-line pro-rata basis on achievement of revenue between £100,000 and £325,000 in the first 12 months post-acquisition.
Additionally, on the second anniversary of the transaction, up to £1.5mln in Crossword shares are payable on a straight-line pro-rata basis on achievement of revenue between £250,000 and £625,000 in the second 12 months following the merger.
Crossword said VCL’s Identiproof product suite is a “key component” in verifiable credentials systems such as Coronavirus (COVID-19) status certificates and their issuer, verifier, and wallet applications.
The technology is currently being used in a UK Government-funded trial of COVID-19 certificates for East Kent Hospitals University NHS Foundation Trust, which Crossword is also involved in, as well as by a client in the entertainment sector and with another customer in the United Arab Emirates.
Crossword said following the tie-up Identifproof will become the third product in its portfolio alongside Rizikon and Nixer.
"VCL has unique knowledge and a fantastic product in the new era of W3C verifiable credentials - which can and should power COVID certificates as well as all manner of digital, secure and privacy-respecting credentials, certificates, tickets and proofs of ownership,” Crossword chief executive Tom Ilube said in a statement.
“This acquisition comes at a time when we are experiencing great success from strategies to increase Rizikon market penetration, particularly the launch of Rizikon Pro.
In the last 6 months this has increased 10 fold, with the number of Rizikon users exceeding 250," he added.