LifeLock purchases Lemon in $42.6 M deal, launches new Lemon-based Wallet
Identity theft protection service LifeLock acquires digital wallet platform Lemon in a $42.6 million transaction, according to a joint statement issued by both companies today. Aside from announcing the deal, the two companies also revealed its new application called "LifeLock Wallet,""which is a product of both of their expertise.
Lemon's platform allows its users to keep their ID, payment, loyalty cards and other content on their smartphones. Since launching in 2011, it raised $8 million in Series A funding the next year from Chamath Palihapitiya's Social+Capital Partnership, Maveron, Lightspeed Venture Partners, CampVentures, Draper Fisher Jurvetson and other angel investors.
The acquisition of Lemon was a strategic one for LifeLock, as it intends to expand its reach in the mobile market. Prior to the launch of its new product today, LifeLock only had an app for iOS for its users of its subscription services.
LifeLock president Hilary Schneider said, "We saw an opportunity to combine an innovative mobile platform - a digital wallet - with access to leading identity theft protection features. The innovation and expertise from a mobile-first company like Lemon gives us powerful new ways to engage with current and future members. The acquisition allows us to accelerate our product roadmap, add additional functionality and data to our platform, expand our market opportunity, better serve our members, and develop a more meaningful relationship with a broad set of consumers."
Lemon, on the other hand, saw the benefit of merging with LifeLock, as it is able to address toe issue of identity and fraud protection in terms of storing IDs of its users in its earlier platform.
Lemon CEO Wences Casares was said to be LifeLock's new General Manager of Mobile, and that he and the Lemon team will operate under the mobile group, and will be moving to Lifelock's headquarters in Bay Area office. Lemon's Buenos Aires team will retain its offices but will be operating under Lifelock as a satellite office.