ForgeRock raises $275M and reaches $2.8B valuation in IPO

The latest major IPO in the biometrics space with ForgeRock’s initial public offering raking in $275 million and its stock price rising by 40 percent to give the enterprise digital identity management provider a valuation of $2.8 billion.

The 11 million shares of Class A common stock in ForgeRock were offered at $25, and jumped to $35 at market opening on their first day, Reuters reports, reflecting heightened investor confidence in the surging value of digital ID.

ForgeRock, now trading on the New York Stock Exchange under the ticker symbol ‘FORG,’ reported $84.8 million in revenue in the first six months of 2021, and a net loss of just over $20 million. The company had targeted a $1.9 billion valuation, according to papers filed with the SEC prior to its public stock launch.

Fran Rosch, the company’s CEO, attributed some of the boost to the rapid digital transformation prompted by the pandemic.

In a presentation at EIC 2021, Acuity Principal Maxine Most pointed to the integration of biometrics from companies like Onfido by ForgeRock and others in the enterprise IAM space as illustrative of a shift among enterprises towards securing the foundations of identity.

ForgeRock reached its IPO having raised more than $230 million in funding from investors including Accel and KKR & Co. Morgan Stanley and J.P. Morgan acted as lead underwriters.

TransUnion acquires Neustar

TransUnion is acquiring digital identity resolution provider Neustar for $3.1 billion, with plans to integrate its technology as part of the company’s plan to diversify its solutions portfolio. TransUnion says it intends to leverage Neustar’s OneID platform, which provides digital identity data management, to unify the digital identity capabilities it has built and acquired in recent years.

The integration of Neustar is expected to accelerate TransUnion’s revenue growth through synergies and an increased presence in digital marketing and identity fraud prevention, according to the company announcement. TransUnion is also looking to OneID to improve the speed and sophistication of its identity-based solutions.

“The credit information and analytics that TransUnion provides make trust possible between consumers and businesses,” states Chris Cartwright, president and CEO of TransUnion. “As digital commerce continues to grow globally, TransUnion’s powerful digital identity assets, enhanced by Neustar’s distinctive data and digital resolution capabilities, will enable safer and more personalized online experiences for consumers and businesses.”

Neustar is expected to generate roughly $575 million in revenue this year, with adjusted EBITDA of $115.

JumpCloud secures $159M

JumpCloud has raised $159 million in a Series F funding round to fuel the continued growth of its device and identity management platform.

The funding round was led by Sapphire Ventures with participation from Owl Rock, Whale Rock Capital, Sands Capital, Endeavor Catalyst and existing investors, and is based on a valuation of $2.56 billion, according to the announcement.

JumpCloud introduced a mobile app for push multi-factor authentication (MFA) to provide a user-friendly alternative to alternatives like time-based one-time passwords, as well as mobile device management automation and SSO tools.

A report produced by the company earlier this year observed a significant push for biometrics adoption among small and medium-sized enterprises.

Article Topics

access management  |  biometrics  |  digital identity  |  ForgeRock  |  identity management  |  IPO  |  JumpCloud  |  stocks  |  TransUnion