LifeLock Files For $175M IPO With Greenberg Guidance (Law360)

LifeLock Inc., a private equity-backed provider of identity theft protection services, plans to raise up to $175 million in an initial public offering of common stock, according to a Tuesday filing with the U.S. Securities and Exchange Commission.

The Tempe, Ariz.-based company, owned by Bessemer Venture Partners and Kleiner Perkins Caufield & Byers, did not give a price range or list the number of shares to be issued in the offering, but said it planned to divert proceeds to paying down debt and future acquisitions.

LifeLock also did not name a target date for the share sale, but said a final version of its preoffering filing was due Aug. 28.

Goldman Sachs & Co., Bank of America Merrill Lynch and Deutsche Bank Securities Inc. will serve as the lead underwriters in the deal, with RBC Capital Markets, Canaccord Geniuty Inc. and Needham & Co. LLC as co-managers.

The seven-year-old online company company provides customers a range of identity-theft protection and fraud-prevention services, including real-time alerts of new account openings or applications including credit information. LifeLock also hosts remediation services for identity theft victims.

The company has posted financial gains so far this year, according to the filing. Through the first six months of 2012, LifeLock reported $125.5 million in revenue, already outpacing last year's sales of $193.9 million, and net income of $11.6 million, fueled in part by its $120 million March acquisition of onetime strategic partner ID Analytics. The growth comes after a $4.3 million net loss for 2011.

In its filing, the company chalks up its the reliability of its success to a subscription-based revenue model — which caters to both individuals and businesses for an annual or monthly fee — as well as a favorable customer retention rate and available infrastructure to support its growth. It also highlighted an increased awareness of identity theft.

As of June 30, LifeLock said in the filing, it had 2.3 million subscribers, a 21.5 percent increase over the previous year. The company says its corporate client roster includes six of the top 10 U.S. financial institutions, three of the top four U.S. wireless services providers and eight of the top 10 U.S. credit card issuers.

The planned offering comes at at time with the IPO market in general has lagged in the wake of a shaky global economy and low investor confidence. Industry analysts have pointed to Facebook Inc.'s multibillion-dollar blockbuster IPO in May as an outlier in an otherwise sluggish scene, which so far this month has seen just a few private equity-backed companies take steps toward going public.

Two weeks ago, Texas-based oil recycler and industrial parts cleaner Safety-Kleen Inc. — owned by a consortium of asset managers including Dallas private fund firm Highland Capital Management LP and Contrarian Capital Management LLC — unveiled plans to raise as much as $400 million in a stock offering.

Safety-Kleen's announcement came a couple of weeks after Sterling Investment Partners-owned grocery store chain Fairway Group Holdings Corp. said it would pursue an IPO.

LifeLock plans to list itself under the LOCK symbol on the New York Stock Exchange.

The company is represented in the offering by Greenberg Traurig LLP. The underwriters are represented by Cooley LLP.

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