Strategic alliance signals growth in digital identity tech
In a pivotal move toward international expansion, Facephi, a specialist in digital identity verification, and Hancom Group, a leading Korean tech conglomerate, announced plans to formalize a deal. The arrangement includes a 5 million euro equity investment in the Alicante-listed company and exclusive distribution rights for Facephi’s solutions across the Asia-Pacific region.
The binding memorandum signed on March 21 in Barcelona marks a first step toward a definitive agreement. It outlines key milestones that demonstrate both firms’ commitment to growth and mutual collaboration. Central to the deal is a strategic capital raise by the Korean group amounting to 5 million euros, at a price of 2.95 euros per share.
The exclusive collaboration agreement grants Hancom a right and license to use Facephi’s technology within the thriving APAC region, strengthening Hancom’s regional footprint. Moreover, Hancom will have exclusive rights to sell and distribute any products developed by Facephi in the same area.
The agreement also includes royalties under which Hancom will pay Facephi licensing fees based on the operating profit from the sales and distribution activities.
This pact represents a forward step for both companies, boosting their stance in the competitive global tech market and opening new growth opportunities. A definitive agreement is anticipated in the coming months, subject to regulatory approvals and customary closing conditions.
The context shows Hancom’s entry into Facephi’s shareholder base follows Facephi’s exploration of a majority stake sale, conducted with the assistance of the advisory firm GP Bullhound. That process concluded without a deal.
Hancom Group is among Korea’s major software conglomerates, recognized for its wide reach and leadership in sectors such as AI, SaaS, electronic documents, aerospace technology, healthcare, education, and entertainment, with several subsidiaries publicly listed. The group is in an ongoing phase of expansion, broadening its global and vertical presence through strategic investments, mergers and acquisitions, and partnerships with international peers to strengthen technological competitiveness on a global scale.
Facephi specializes in safeguarding and verifying digital identities, emphasizing security and data integrity. Its solutions aim to create safer, more accessible processes that reduce fraud, prevent identity impersonation, and ensure ethical handling of personal data. The company, led by Javier Mira, employs more than 260 people and serves over 300 clients across 25 countries. In 2023 it achieved a revenue record, reporting approximately 30.08 million euros from software license sales, up 35 percent from the previous year.
Both firms are positioned to leverage complementary strengths: Facephi’s advanced identity verification technology paired with Hancom’s expansive software ecosystem, including cloud services and enterprise solutions. The collaboration is expected to accelerate product development, expand market reach in APAC, and create integrated offerings for customers seeking robust digital identity protection and streamlined compliance in the region. This strategic alignment indicates a broader shift toward scalable, privacy-respecting identity solutions in a rapidly digitizing world. (Source attribution: corporate announcements and market analysis reports.)