LifeLock Files for a $175 Million IPO

The prospects look promising for the deal

   

LifeLock, a company that provides identity theft services, has filed for an IPO to raise as much as $175 million. The underwriters include Goldman Sachs (NYSE:GS), Bank of America Merrill Lynch (NYSE:BAC) and Deutsche Bank (NYSE:DB). The company plans to list on the New York Stock Exchange under the symbol of “LOCK.”

The LifeLock service uses predictive analytics and huge data sets to help prevent identify theft. There is a basic version, which costs $10 per month, and a premium edition, which is $25 per month.

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The customer base is almost 2.3 million and grew by nearly 22% over the past year. The retention rate is a healthy 85%.

LifeLock also has a corporate services business. This came from the acquisition of ID Analytics back in March.

For the six months ending June 30, 2012, LifeLock generated revenues of almost $194 million, compared to just under $126  million in the same period in 2011. Cash flow are also $23 million for the current year.

In light of the strong financials as well as its large user base, it’s a good bet that LifeLock will get traction with its IPO, which is likely to happen within a month or so.

Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli. As of this writing, he did not own a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/lifelock-files-for-a-175-million-ipo/.

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