Well over $6 billion in acquisitions took place in the identity management business last year, new data shows, reflecting a quietly booming segment of the technology industry around the globe.
Crunchbase conducted an analysis of the identity management industry, and discovered that both strategic acquisition and private equity buyers placed considerable investments into the market in 2016.
The bulk of those dollars spent came from two major acquisitions: Advent International’s 2.425 billion euro purchase of biometrics company Safran Identity & Security, and Symantec’s $2.3 billion acquisition of identity theft protection company LifeLock.
Bringing in another $600 million was identity management and single sign-on provider Ping Identity, which sold to private equity firm Vista Equity Partners.
Crunchbase also found that companies in the identity management industry raised more than $200 million in venture capital in 2016. Of particular interest to investors was healthcare technology and authentication.
A key component in digital identity management and the medical field could prove to be blockchain, as experts believe the technology will become more specialized, advanced, and tailored to individual needs as technology evolves. IBM Watson Health and the U.S> Food and Drug Administration are currently testing whether blockchain can be used to improve public health, allowing for secure exchange of personal health data online.
To that effect, TechCrunch noted that the third leading cause of death in the U.S. — medical mistakes — could at least in part be solved by better identification methods in health care.