Auth startup Callsign raises $35M, Somatix nets $6M: Friday Deal Book for 7/28/2017

One World Identity’s Friday Deal Book provides you with a weekly roundup of partnerships, funding, and product announcements in the identity industry. Here’s a quick peek at what you need to know for the week ending July 28, 2017.

Gemalto shares decline sharply after announcing $489 million impairment charge
Security giant Gemalto announced a goodwill impairment charge of around 420 million euros ($489 million). Shares fell 17.3 percent on Monday and continued their decline, ending the week with an over 20 percent loss. While operating profit for the first half of the year was in line with expectations, its Americas payments and SIM businesses continue to see double digit declines. The company’s second quarter revenue was 9 percent lower compared to the same period year over year. However, Gemalto predicted a stable revenue year over year for the second half driven largely by revenue acceleration from the 3M Identity Management Business it acquired earlier this year. Rapid technology change and the rise of niche players have challenged larger incumbents in the space. [Read more]

Israeli Digital health big data company Somatix raises $6 million Series A
The round was led by Digitalis, bringing Somatix’s total funding to $7.5 million. Somatix’s platform allows medical providers to observe physical and emotional medical symptoms from hand gestures. The company’s Body Motion Data Management platform utilizes sensors built into wearables to collect data, examining and filtering the motion data in real time to produce insights on physiological and emotional states. Medical providers are able to maintain continuous, bi-directional contact with those under their care through the platform. Despite concerns around both privacy and security, the medical connected device market continues to grow rapidly for both in hospital and out patient use cases. [Read more]

London authentication startup Callsign raises $35 million series A
The round was led by Accel and PTB Ventures, with participation from Allegis Capital and NightDragon Security. Callsign’s Intelligence Driven Authentication platform provides risk based authentication solutions, allowing enterprises to create adaptive authentication policies that adjust the type of authentication users encounter in based on risk profile. Callsign’s platform integrates with a variety of existing mobile authentication solutions as well as enterprise identity and access management platforms. The company plans to use the funds for an aggressive global expansion, specifically targeting the US and Asia. Investment in authentication solutions has been strong this quarter, with notable earlier fundraising from Nok Nok Labs, Auth0 and Trusona. [Read more]

Biometrics startup B-Secur raises £3.5 million in early stage funding
Accelerated Digital Ventures and Kernel Capital led the round. B-Secur is tackling the liveness detection challenge of biometrics quite literally by using heartbeats to identify users. The company is targeting customers across a range of sectors from financial services to companies with physical access control needs and the automotive industry. Picking up the user’s heartbeat does not require wearables – just conductive material – which the company hopes will make its solution compatible with a variety of form factors, including physical access cards. The proliferation of low cost sensors has catalyzed tremendous growth in the use of biometrics across previously unaccessible industries, and has sent investors hearts racing. [Read more]

OpenText completes acquisition Covisint, announces acquisition of Guidance Software
OpenText is a Canadian based Enterprise Information Management (EIM) provider. The company has gone on an acquisition spree, having just closed its acquisition of IoT digital identity provider Covisint for $103 million and announcing its acquisition of cybersecurity player Guidance Software for $240 million. The rapid growth of software as a service, cloud computing, and connected devices has subsequently led to dramatic changes in the security landscape. We anticipate increased acquisition and merger activity in the space as providers vie to become the new ‘one stop shop’ for security. [Read more]