XTec acquired by Germany-headquartered security tech firm

XTec, a provider of secure identity and credential management technologies to government agencies, has agreed to be acquired by a security technology company looking at U.S. public sector as a growth avenue.

Giesecke+Devrient is headquartered in Munich, Germany, and originally was founded in 1852 as a manufacturer of banknotes and other financial-related items. G+D is now a 14,000-employee provider of tech tools for use in payment systems, identities, connectivity, and digital infrastructures.

Through this transaction announced Tuesday, G+D is establishing a larger foothold in North America and adding an XTec business whose ecosystem is authorized at the highest level of the FedRAMP cloud authorization program. Financial terms of the agreement were not disclosed.

XTec will be integrated into the portfolio of Veridos, a joint venture between G+D and fellow Germany-headquartered tech group Bundesdruckerei. From XTec’s perspective, the idea behind this combination is having access to greater resources and reach with the backing of a larger owner.

“Our team has been building trusted relationships with U.S. government agencies since 1992, and we look forward to continuing that work with the added technological strength and reach of G+D and Veridos,” XTec’s president Kevin Kozlowski said in a release.

XTec has recorded approximately $53.5 million in unclassified prime contract revenue over the trailing 12 months, according to USASpending.gov data.

The company captured a potential 10-year, $177.2 million task order in the fall to provide its identity authentication and management technologies for a credentialing program that covers 105 agencies.

Federal employees and contractors are a part of USAccess, which helps credentialed users log into computers and networks. Facility and secured area access, encryption and digital document signature are additional features of USAccess.