- Data Protection has increasingly become a focus around the globe, with the United States and Europe recently agreeing to implement a joint data privacy framework
- With one small company said to be successfully hacked every 19 seconds, losses attributed to data breaches in the United Kingdom alone amount to over £4 billion per annum
- Reklaim has centred its business model around enabling users to reclaim their data, delete it or in its stead, monetize it
- The company recently entered a non-binding letter of intent to purchase US-based Multimedia Lists to expand its top-line revenue and profitability further
In 2004, Philip Cummings pleaded guilty to one of the most significant identity theft cases in the United States. Cummings worked at a desk job at Teledata Communications, Inc. in Long Island, New York, helping companies run routine credit checks. On the day he resigned, Cummings packed up his desk – along with the passwords of 33,000 of the company’s clients. Cummings would go on to sell the sensitive data to criminals who would use it to drain bank accounts and open new lines of credit, with total losses pegged by the Government at upwards of $100 million (https://nnw.fm/EQC0v). While enormous, the scale of losses generated by Cummings’ actions is increasingly trivial in today’s online world. In the United Kingdom alone, one small business is hacked every 19 seconds, with data breaches driven by identity theft reportedly costing the nation over £4 billion in losses every year (https://nnw.fm/ZJM4e). It is this growing phenomenon that companies like Reklaim (TSX.V: MYID) (OTCQB: MYIDF) seek to tackle.
Reklaim’s creation was a by-product of the ongoing evolution of data privacy and its impact on consumers and companies. The company’s revolutionary system allows consumers to log in to their platform and confirm their identity, unlocking data collected on them that has been bought and sold for years without their explicit consent. At that point, consumers can take control of their data and, if they choose, receive compensation for its use. With consent secured, Reklaim offers the data to Fortune 500 brands, platforms, and data companies, and when sold, the consumer is compensated a fractional share of the revenue. The company also has a privacy SaaS subscription service for privacy-conscious consumers interested in knowing when their data has been breached and who would like to reduce the amount of data leaking from their devices (https://nnw.fm/habyk).
While data protection is not a novel development – the European Union published its initial data protection rules as far back as 1995 – the use of customer data has become an increasingly integral part of many companies’ commercial operations in recent years. The ongoing move towards restoring customer data privacy and the occasional lack of data availability has resulted in many unintended consequences across businesses. For instance, Meta (formerly Facebook) recently guided that it expected 2022 revenues to decline by $10 billion because of Apple’s changes to restrict user data collection across external applications (https://nnw.fm/nntW6). Meanwhile, the popular navigation app Waze became less effective in one of the more unexpected outcomes of the COVID pandemic. With fewer drivers on the road during widespread lockdowns, it no longer benefitted from a steady flow of data to feed into its algorithms (https://nnw.fm/g3n2C).
Seeking to capitalize on the increased global emphasis on data privacy, the desire from consumers to monetize their personal information, as well as growing commercial demands to access consumer-generated insights, Reklaim recently revealed that it had entered a non-binding letter of intent to purchase the assets of US-based data broker, Multimedia Lists (“MML”). The transaction, which is expected to double the revenue of the amalgamated entity post-acquisition immediately, will entail a purchase price determined as a multiple of MML’s EBITDA and will also include a performance earn-out over a four-year term.
“MML has several Fortune 500 clients that complement the existing clients and distribution of Reklaim. As privacy legislation and technology changes put the onus on data companies to ensure that clients’ data is compliant, partnering with Reklaim will help MML retain and grow its client base. As we have previously communicated to the market, we have identified a unique opportunity to amalgamate data companies that lack the tools to maintain consent with consumers, and we are excited to accelerate this strategy over the coming quarters,” said Reklaim CEO Neil Sweeney regarding the potential acquisition (https://nnw.fm/pyw3e).
For more information, visit the company’s website at www.ReklaimYours.com.
NOTE TO INVESTORS: The latest news and updates relating to MYIDF are available in the company’s newsroom at https://nnw.fm/MYIDF
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