About OneSpan

OneSpan Inc. (OneSpan) provides high-assurance identity and authentication security, as well as enterprise-grade electronic signature (e-signature) solutions for use cases ranging from simple transactions to workflows that are complex or require higher levels of security. The company’s solutions help its clients ensure the integrity of the people and records associated with digital agreements, transactions, and interactions in industries, including banking, financial services, healthcare, and professional services. The company offers a portfolio of products and services across identity verification, authentication, virtual interactions and transactions, and secure digital storage. OneSpan has operations in Austria, Australia, Belgium, Canada, China, France, Japan, The Netherlands, Singapore, Switzerland, the United Arab Emirates, the United Kingdom (U.K), and the United States (U.S.). OneSpan helps organizations accelerate digital transformations by enabling secure, compliant, and refreshingly easy digital customer agreements and transaction experiences. The company delivers digital agreement products and services that automate and secure customer-facing and revenue-generating business processes. The company’s solutions help organizations streamline and secure user experiences, which in turn allows them to drive growth, reduce risk, and unlock their business potential. The company’s solutions are powered by a portfolio of products and services across identity verification, authentication, virtual interactions and transactions, and secure digital storage. These products and services can be acquired and embedded individually within enterprise business workflows or assembled into tailored solutions for simple yet secure business-to-business, business-to-employee, and business-to-customer experiences. The company offers its solutions through cloud-based and, in select cases, on-premises solutions using both open standards and proprietary technologies. The company offers its products primarily through a subscription licensing model. The company’s solutions are sold worldwide through its direct sales force, as well as through distributors, resellers, systems integrators, and original equipment manufacturers. Business Transformation In May 2022, the company announced a three-year strategic transformation plan that began on January 1, 2023. In conjunction with the strategic transformation plan and to enable a more efficient capital deployment model, effective with the quarter ended June 30, 2022, the company began reporting under the following two lines of business, which are its reportable operating segments: Digital Agreements and Security Solutions. Digital Agreements Digital Agreements consists of solutions that enable the company’s clients to secure and automate business processes associated with their digital agreement and customer transaction lifecycles that require consent, non-repudiation and compliance. These solutions, which are largely cloud-based, include its OneSpan Sign e-signature solution and its recently introduced OneSpan Notary and Virtual Room solutions. This segment also includes costs attributable to the company’s transaction-cloud platform. Security Solutions Security Solutions consist of the company’s broad portfolio of software products and/or software development kits (SDKs) that are used to build applications designed to defend against attacks on digital transactions across online environments, devices and applications. These solutions, which are largely on-premises software products, include identity verification, multi-factor authentication and transaction signing, such as mobile application security, mobile software tokens, and Digipass authenticators that are not cloud connected devices. Products and Services Portfolio The company offers a portfolio of products and solutions to enable secure, compliant and refreshingly easy customer interactions and transactions. Whereas other companies provide point solutions for either security or digital agreements, the company supports the entire lifecycle of digital agreements for global enterprises that need to meet the highest levels of assurance, security, and compliance, all while using a human-centric approach that minimizes friction for customers. The company’s portfolio spans across the stages of the digital agreement process: Verify – Identity Proofing and Verification: Establish a relationship with your customer, starting with knowing who they are. Authenticate – User Authentication: Protect yourself and your customer’s identity with strong customer authentication. Interact – Virtual Room: Connect and collaborate with your customers in a secure, virtual environment. Transact – E-Sign: Sign transactions and agreements remotely and securely. Store – Secure Vaulting: Complete the digital agreement process by securely storing transaction records and documentation. Digital Agreements OneSpan Sign supports a broad range of e-signature requirements from simple to complex, and from the occasional agreement to processing tens of thousands of transactions. OneSpan Sign provides multiple deployment options, including public cloud or private cloud, without compromising security or functionality. The solution is also available in a Federal Risk and Authorization Management Program (FedRAMP) SaaS-level compliant cloud, allowing the U.S. government agencies to implement e- signatures in the cloud and meet General Services Administration (GSA) security requirements. Customers can configure OneSpan Sign to reinforce their brand for a seamless signing experience. Each step of the digital agreement workflow can be customized, from authentication to e-signing and secure storage. OneSpan Sign also provides comprehensive and secure electronic evidence for strong legal protection by capturing all actions that took place during the agreement process. Electronic signature capabilities can be a critical component of the account opening and onboarding processes, providing a secure and user-friendly way to execute legally binding agreements. Virtual Room is a purpose-built, high-assurance solution that blends the simplicity of a consumer video collaboration app with high-assurance identity and authentication security. OneSpan’s secure Virtual Room cloud service enables organizations to deliver live, high-touch assistance to their customers in a secure virtual environment. This next-generation customer engagement solution gives organizations the ability to combine identity verification, authentication, and e-signature solutions from the broader OneSpan portfolio with a high-assurance virtual experience that removes the friction of entering a branch or meeting in person. In addition, robust audit and compliance controls help manage risk and meet regulatory requirements. OneSpan Notary is the newest addition to the OneSpan product portfolio that spans the entire digital agreements lifecycle from identifying an unknown signer all the way to securely storing an agreement and associated assets. Developed for organizations with in-house notaries, OneSpan Notary includes live electronic signature, two-way secured videoconferencing, and strong identity proofing options, like ID Verification and Knowledge-based Authentication (KBA). It also simplifies the notarization process with guided workflows, the ability to upload eNotary Seal, recording, eJournaling, and audit trail capabilities in a single solution. Digipass CX is OneSpan’s latest family of cloud-connected high-assurance identity verification and authentication devices designed to increase security, minimize fraud, and simplify the user experience. These new devices rely on biometrics rather than one-time passwords which can be stolen via social engineering. Because these devices are connected to the cloud, they can be dynamically provisioned, reprovisioned, and even updated to incorporate new features and applications as they become available in the future. The company plans for the first two Digipass CX models to be generally available later in 2023. Secure Storage is a new addition to the OneSpan product portfolio through the first quarter 2023 acquisition of ProvenDB. OneSpan plans to integrate the ProvenDB Compliance Vault technology obtained through the acquisition to add blockchain-backed secure storage initially for the OneSpan Sign product and eventually across the entire portfolio. This new secure storage capability is designed for high-value, high-risk use-cases by providing tamper resistant document storage supported by immutable compliance data, all protected by blockchain technology. Security Solutions OneSpan Identity Verification gives banks and other financial institutions access to a wide range of identity verification services – all through a single API integration. This includes identity document (e.g., driver’s license, passport, etc.) capture and real-time authenticity verification, as well as facial comparison (selfie) and liveness detection (the ability to detect whether a digital interaction is with a live human being) to establish that the individual presenting the identity document is the same person whose picture appears on the authenticated identity document. OneSpan Cloud Authentication is a quick-to-deploy, cloud-based multifactor authentication solution that supports a full range of authentication options, including biometrics, push notification, visual cryptograms for transaction data security, SMS, and hardware authenticators. This allows customers to solve strong authentication problems across different endpoints to best meet their unique requirements through a single provider rather than integrating multiple modalities together. Mobile Security Suite is a comprehensive software development kit that helps protect mobile transactions from bad actors by allowing organizations to natively integrate security features, including geolocation, device identification, jailbreak and root detection, fingerprint and face recognition, one-time password delivery via push notification, and transaction data security, among others. Through a comprehensive library of APIs, application developers can extend and strengthen application security, deliver enhanced convenience to their application users, and streamline application deployment and lifecycle management processes. Mobile Security Suite also includes a Runtime Application Self-Protection module, which can detect and mitigate malicious app activity and potential loss to hacking activities. Authentication Server resides on-premises and incorporates a range of strong authentication utilities and solutions designed to allow organizations to securely authenticate users and transactions. The solution, once integrated, becomes largely transparent to users, minimizing rollout and support issues. Authentication Server encompasses multiple authentication technologies (e.g., passwords, dynamic password technologies, certificates, and biometrics) and allows the use of any combination of those technologies simultaneously. Digipass Authenticators are the company’s family of hardware authenticators, consisting of a wide variety of authentication devices, each of which has its own distinct characteristics to meet the needs of its customers. All models of the Digipass family of authenticators are designed to work together so customers can switch devices without changes to their existing infrastructure. The company’s models range from one-button devices and smart card readers to devices that include more advanced technologies, such as public key infrastructure (PKI) and visual cryptography. Digipass devices included in the Security Solutions segment are not cloud-connected, in contrast to its cloud-connected Digipass CX device, which it expects to include in the Digital Agreements segment. Intellectual Property and Proprietary Rights and Licenses The company holds several patents in the U.S. and in other countries, which cover multiple aspects of its technology. These patents expire between 2023 and 2040. In addition to the issued patents, the company has several patent applications pending in the U.S., Europe, and other countries. Many of the company’s issued and pending patents are related to its Digipass product line. In addition to its owned IP, the company licenses software from third parties for integration into its solutions, including open-source software and other software available on commercially reasonable terms. Research and Development For fiscal years ended December 31, 2022, the company incurred expenses, net of software capitalization, of $41.7 million for research and development. Production The company’s Digipass authentication devices are manufactured by third-party manufacturers pursuant to purchase orders that it issues. The majority of the company’s Digipass products are manufactured by four independent factories in Southern China and one in Romania. The company maintains local teams in China and Romania to conduct quality control and quality assurance procedures. The company purchases microprocessors and arrange for shipment to third parties for assembly and testing in accordance with its design specifications. During 2022, the supply chain for the company’s Digipass devices was impacted by global issues related to the effects of the COVID-19 pandemic, the Russia-Ukraine conflict and the inflationary cost environment, particularly with respect to materials in the semiconductor market. The company’s software solutions are produced in-house or developed by third parties and sold under license. Research and Development For the fiscal year ended December 31, 2022, the company incurred expenses, net of software capitalization, of $41.7 million for research and development. Competition The company’s main competitors in its identity verification and authentication markets are Gemalto, a subsidiary of Thales Group, and RSA Security. There are also many other companies, such as Transmit Security, Symantec, and Duo Security, that offer competing services. The company’s main competitors in its identity verification and authentication markets are Gemalto, a subsidiary of Thales Group, and RSA Security. There are also many other companies, such as Transmit Security, Symantec, and Duo Security, that offer competing services. Sales and Marketing The company’s solutions are sold worldwide through its direct sales force, as well as through distributors, resellers, systems integrators, and original equipment manufacturers. The company’s sales staff coordinates sales activity through both its sales channels and those of its partners, making direct sales calls either alone or with the sales personnel of its partners. The company’s sales staff also provides product education seminars to sales and technical personnel of resellers and distributors, with whom it has working relationships, and to potential end users of its products. Customers and Markets The company sells to the enterprise market segment, government, healthcare, and insurance industries in select regions around the globe. The company experiences seasonality or variation across the year (year ended December 31, 2023) in its markets. History The company was founded in 1991. It was formerly known as VASCO Data Security International, Inc. and changed its name to OneSpan Inc. in 2018.