Socure turns to revolving credit as market sours

The economy may not officially be in a recession but observers of corporate finance in biometric ID have room to differ. Almost daily comes news of another identity firm forced to buy some financial breathing room.

For example, Socure has gotten a $95 million, three-year line of credit from J.P. Morgan, Silicon Valley Bank and KeyBanc Capital Markets. It is not known what interest rate the revolving line of credit commands.

Johnny Ayers, CEO of Socure, issued a statement dropping the R bomb.

“With this facility further strengthening our balance sheet, Socure is in a tremendous position to leave the recess much stronger,” Ayers is quoted saying in a press release.

Idemia has had to reach further for financial buttressing. It is rumored that its owner of several years, private-equity firm Advent International, has hired an investment bank to help with an unconventional sell strategy for Idemia that is full of incentives for wary buyers.

Just weeks ago, the market was throwing money around for digital identity players and, for the most part, the only price was equity.

By itself, a revolving line is not a death knell. It is not even a tug on the bell’s rope. It is, however, an indication that the money people have pulled in their horns. That means companies cannot just talk about prudent corporate management anymore.

Article Topics

biometrics  |  digital identity  |  identity verification  |  investment  |  Socure