Fundamental View

Verisec is a software security company providing digital identity solutions, including mobile ID, and information security solutions such as encryption and decryption. Since it was founded, Verisec's skilled management team has been quick to adapt to the market environment, enabling the company to outgrow the security market as a whole. Verisec’s management originates from the successful Protect Data business, and they retain significant ownership in Verisec of approximately 60 percent. The company’s target is to achieve revenues of SEK 200 million in year 2020 with an EBIT margin of 15-20 percent.

Last updated: 2018-11-11 Source: Redeye

Representing 80 percent of sales for the digital identity segment, online banking is a core focus for Verisec and is likely to remain so in the future. We expect that Authentication as a Service (AaaS) called Freja eID, and its associated cloud services, will grow significantly the nextcoming years.

Verisec holds a significant position in the information security segment, as a preferred supplier to Thales within the EMEA region, providing data encryption.


Last updated: 2017-05-23 Source: Redeye

According to Gartner, the market for two-factor authentication is worth USD 2 billion, and represents around 3 percent of the total security market. Given the intensity of the competition, even a 0.1 percent stake (approx. SEK 150 million) of this market is strong performance. In general, product demand is at its greatest where high security is most critical, such as in banking and finance, e-government, defense and enterprise security. Furthermore, around 88 percent of IT technology decision-makers regard existing threats and vulnerabilities as being of high or critical priority.

Last updated: 2017-05-23 Source: Redeye

  • Freja eID - the key growth driver
  • We expect Freja eID to become a standard in the public sector
  • A variety of other potential customer segments

The key growth driver in future years will be Verisec’s Authentication as a Service (AaaS), called Freja eID, and its associated cloud services. A new legislation proposal ”Reboot – omstart för den digitala förvaltningen” suggests that it from 2020 will be mandatory for all public sector entities to offer citizens to identify themselves to public services using the eID of their own choice, as long as this eID is officially approved. This opens up a user base for Freja eID that includes most Swedish citizens. 

We expect Freja eID to become a standard in the public sector. The four most important factors that support Verisec's solution in this segment is; the technical platform in cooperation with Tieto, the infrastructure established in the cooperation with ATG, the certification from Sweden’s E-identification Board and the cost control obtained from the pricing model. Freja eID will eventually build a portfolio of relevant services that can drive traffic and revenues for Verisec.

In addition to the public sector, Verisec has a variety of other potential customer segments. We believe that retail chains and e-commerce could regard better cost control as a good reason for joining Verisec's service. The simplicity offered by the proximity of ATG agents to stores and postal agents makes cooperation within this segment more logical. A number of niche banks and gambling companies could also offer Freja eID as a complement to BankID. If Freja eID succeeds in reaching a critical mass, we believe that gambling companies and various payment solutions providers will follow suit. eIDAS and other national and international regulations will be key future drivers for Freja eID.

Last updated: 2018-11-11 Source: Redeye