AAA TeleSign signals Telstra exit through $230m acquisition

TeleSign signals Telstra exit through $230m acquisition

Telecommunications company Telstra is set to exit US-based cloud communications platform developer TeleSign after mobile data services provider Bics agreed yesterday to acquire the company for $230m in cash.

Founded in 2005, TeleSign supplies secure authentication and mobile identity services to digital and internet service providers, enabling them to add real-time communications into existing applications or services without building out backend infrastructure.

Bics claimed in a statement that the acquisition will create the world’s first end-to-end communications-platform-as-a-service company by linking TeleSign’s technology with a global voice carrier service. It will also give Belgium-based Bics a larger presence in the Americas.

Daniel Kurgan, CEO of Bics, said: “By combining the power of TeleSign’s advanced cloud communication platform and customer base with Bics’ market-leading footprint and global reach, we are well positioned to lead the development of one of technology’s most exciting sectors.”

TeleSign has raised $78m in venture funding according to regulatory filings and press releases, $49m of which came in a 2014 series B round that included $9m from Telstra’s corporate venturing arm, Telstra Ventures.

Private equity firm Adams Street Partners led the $40m first tranche of the round, investing alongside venture capital firms March Capital Partners and Summit Partners, the latter participating as an existing investor.

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