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.
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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
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