Jack Ma's Ant Looks To Shed US Biometric Security Unit EverVerify: FT
9:38pm ET 1/26/2021 Benzinga
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Alibaba Group Holding Ltd (NYSE: BABA) subsidiary Ant Group is planning to sell a key biometric security company it owns in the United States, the Financial Times reported Tuesday.
What Happened: The Chinese fintech is looking to sell the Kansas City, Missouri-based EyeVerify in the first half of this year, according to a person familiar with the matter.
Discussions were held with a number of potential acquirers, FT's sources revealed.
EyeVerify's technology â?? which allows users to scan their face as a password â?? is used by major banks such as Wells Fargo & Co (NYSE: WFC).
EyeVerify was seen to pose data security concerns by some in the previous Donald Trump administration, according to Roger Robinson, CEO of RWR Advisory Group, a research and risk consultancy.
'Moving to protect the personal data of Americans will probably continue under President [Joe] Biden for both political and security reasons,' said Robinson.
Why It Matters: Ant purchased EyeVerify for $100 million in 2016. The deal was cleared by the Committee on Foreign Investment in the U.S., as per FT.
The sale takes place amid heightened U.S.-China tensions and growing scrutiny of user data in the United States.
The Jack Ma-founded fintech also faces potential fines and restructuring costs and is looking to raise capital.
In November, Ant's mega-IPO was scuttled by Beijing after Ma and other Ant executives were summoned by Chinese regulators for a reprimand.
See Also: China President Xi Jinping Personally Ordered Halt Of Jack Ma's Ant IPO: WSJ
China's central bank Governor Yi Gang said Tuesday that the IPO can resume once issues surrounding Ant's alleged monopoly and consumer privacy are solved.
