OneSpan acquires Nok Nok to enhance authentication solutions

BOSTON & SAN JOSE, Calif. - OneSpan Inc. (NASDAQ: OSPN), a global leader in secure authentication and digital transaction solutions, has announced the acquisition of Nok Nok Labs Inc., a pioneer in passwordless authentication technology. The deal, which took place earlier this week, aims to bolster OneSpan’s commitment to providing advanced and flexible authentication methods for its customers.

The acquisition allows OneSpan to integrate Nok Nok’s expertise in FIDO (Fast Identity Online) standards with its own security solutions, including recently launched FIDO2 security keys. This strategic move is set to offer OneSpan’s customers a comprehensive suite of authentication options, ranging from one-time passwords (OTP) to FIDO protocols and transaction signing solutions. The company’s strong gross profit margin of 73% demonstrates its operational efficiency in delivering these solutions. For detailed analysis of OneSpan’s growth potential and comprehensive financial metrics, investors can access the full Pro Research Report available on InvestingPro.

Victor Limongelli, CEO of OneSpan, emphasized the significance of the acquisition, stating, "This is more than an acquisition; it’s a bold step toward providing customers with maximum choice in authentication. With Nok Nok’s world-class technology and FIDO expertise, we now offer the most comprehensive and versatile customer authentication solution on the market."

Nok Nok, a founding member of the FIDO Alliance, has been instrumental in advancing passwordless authentication standards globally. Its strong authentication platform is known for its seamless integration and scalability, supporting a range of protocols to meet various regulatory and business requirements.

Phillip Dunkelberger, President & CEO of Nok Nok, commented on the acquisition, "Joining OneSpan marks an exciting new chapter for our team and our technology. With OneSpan’s global reach and innovation engine, we’re now poised to bring our vision to an even broader audience."

The FIDO Alliance also recognized the potential impact of the acquisition. Andrew Shikiar, Executive Director & CEO of the FIDO Alliance, said, "Nok Nok has been a trailblazer in the FIDO ecosystem, and we’re thrilled to see their innovation carried forward through OneSpan’s global reach and resources."

OneSpan plans to integrate the strengths of both companies into a unified portfolio, aiming to deliver enhanced value to its banking and enterprise customers. The company’s solutions are trusted by over 60% of the world’s 100 largest banks and are used in over 100 countries. InvestingPro analysis indicates OneSpan maintains excellent financial health with an overall score of "GREAT," supported by strong liquidity ratios and efficient capital management. The company’s current ratio of 1.96 demonstrates its ability to meet short-term obligations, while maintaining a remarkably low debt-to-equity ratio of 0.04.

The information for this article is based on a press release statement from OneSpan Inc.

In other recent news, OneSpan Inc. reported its Q1 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.45, compared to the forecasted $0.34. The company’s revenue for the quarter reached $63.4 million, slightly above the forecast of $62.89 million, although this represented a 2% decrease year-over-year. Notably, OneSpan’s Annual Recurring Revenue (ARR) grew by 9% to $168.4 million, and the company declared its first quarterly dividend of $0.12 per share. Despite the positive earnings surprise, the stock experienced a minor decline in after-hours trading. Analysts from firms like BTIG and Sidoti noted OneSpan’s cautious approach to the macroeconomic environment, which could impact future performance. Additionally, the company is exploring potential mergers and acquisitions to enhance its security offerings. These developments highlight OneSpan’s ongoing transition to subscription-based services and its strategic focus on digital agreements and security subscriptions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.