'TeleSign,' the digital identity verification and fraud prevention company based in Los Angeles, has announced a new deal with a special purpose acquisition company (SPAC) valued at approximately $1.3 billion USD. SPACs operate by locating private businesses that would suit the public market and purchasing the company for the sole purpose of bringing it to the publicly traded market.
TeleSign signed a deal with the North Atlantic Acquisition Corp (NAAC) with an initial offering of $487 million, plus an additional private investment of $107.5 million. TeleSign expected to generate approximately $400 million in revenue in 2021. However, with its debut into the publicly traded sector, it expects to generate nearly $1.1 billion in revenue annually by 2026.
TeleSign, now being a public company, will have improved transparency on its digital ID verification operations. This includes partnerships, methodology, and fraud prevention practices. TeleSign will scale its services with its new funding in order to grow to a wider range of partners and customers in the ever-growing field of digital ID verification.
Public ID Verification Firms
TeleSign Announced a Deal with the NAAC and its Public Debut
Trend Themes
1. Digital ID Verification Technology - As more companies expand into digital spaces, there will be opportunities for disruptive innovation in technology that helps verify the identities of users.
2. SPAC Deals - As more private companies look to go public, there will be opportunities for disruptive innovation in the SPAC market and related financial services.
3. Transparency in Fraud Prevention - As demand grows for secure online transactions, there will be opportunities for disruptive innovation in improving the transparency of fraud prevention practices.
Industry Implications
1. Digital Security - The digital security industry can leverage TeleSign's success to enhance their own fraud prevention and digital ID verification offerings.
2. Financial Technology - Fintech companies can capitalize on the growing interest in SPAC deals and related financial technology services to bring private companies to the public market.
3. E-commerce - With the growing demand for e-commerce, there will be opportunities for online retailers to leverage digital ID verification technology to create a more secure experience for customers.