Digital ID verification firm TeleSign to go public via $1.3bn SPAC deal

Digital identity verification and fraud prevention company TeleSign is going public through a merger with a blank-check firm via a $1.3bn deal, the acquisition vehicle said on Thursday.

Dealmaking by special purpose acquisition companies has ticked up recently after a lull earlier this year due to chilly reception from investors and increasing scrutiny from regulators.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

Sign up

However, it is still down compared to last year when such mergers emerged as one of the hottest trends on Wall Street. High-profile mergers including those of digital media company BuzzFeed Inc and Zoom-backed Cvent have recently been torpedoed by high investor withdrawals.

TeleSign’s deal with North Atlantic Acquisition Corp will fetch proceeds of $487m, including a $107.5m private investment in public equity.

California-based TeleSign helps businesses to secure their digital identities, prevent fraud and establish secure communications.

TeleSign expects to generate revenue of $391m in 2021 and increase it to nearly $1.1bn in 2026.

Special purpose acquisition companies, or SPACs, are listed but have no business operations, except hunting for a private company to take public.

Source: Reuters

Can’t stop reading? Read more