The deal has been funded by investment banker Carl Pauwels, Cox, who was chief executive of the business when it went into administration, and a Singapore-based investment fund. It has made management changes and said it has "retained all the key people needed" to take the business forward.

ID Data, which has offices in Hampshire and Northamptonshire, appointed administrators Malcolm Shierson and John Whitfield of Grant Thornton on 29 October last year.

Cox said: "The future for CDML and its wholly owned subsidiary TTi Card Technology Europe is expected to be very positive, thanks to the continued support of it's customers over the last months who have supported the business through a very tough period by continuing to order product and services from the company.

"The ID Data staff have been very supportive and stood by the company over the last months, thus ensuring we have not suffered any loss of capacity or capability."

Pauwels added: "The company is positive about its immediate potential and the long-term future. The support by its core clients has been true reward for having built a past reputation for excellent service and quality, plus handling complex volume card deliveries for some of the worlds leading brands."

ID Data claimed, shortly before its fall into administration, that HM Revenue & Customs refused to allow the company to postpone repayment of its cash debts.

The main business will now trade as ID Data (2009).

Also see:
Government set to announce backdown over ID cards trial
ID Data Group wins £3m contract