We need to cover again Iddriven Inc (OTCMKTS:IDDR), which develops Identity and Access Management enterprise solutions, because many things happened after we published our last article; “IDdriven Inc. (OTCMKTS:IDDR) Hits The OTC”.
Why right now?
The company drew our attention because of news that noted that the company could start looking at scenarios for potential mergers and acquisitions. The announcement came out on September 1, 2017, consequently both the share price and volume increased astonishingly. Have a look at it before we provide more details:
Let’s revisit again the business model for those who are becoming aware of the company now. IDdriven, Inc. develops Identity and Access Management enterprise solutions. In plain words, this software helps users “ensure that access across multiple technological environments is granted only to the right individuals.” In particular, the most remarkable product developed is called IDdriven, which helps manage large volume of users “and access rights over various applications in hybrid environments (cloud and on-premise).”
We could read in the documentation that the Identity and Access Management market is not small and is growing at a fast pace. The company notes that industry analysts project that it will double from $9.16 billion in 2014 to $18.30 billion in 2019, a 14.85% CAGR.
On September 6, the company noted that Rhode Island based health system “Lifespan” had selected the company’s product “IDdriven” for its Identity Management and Access solution. For those who don’t know this new client, Lifespan operates hospitals in Rhode Island. The company has 19,000 employees, and contractors. According to the press release, the new client appreciated the reliable certification and attestation provided by IDdriven as well as its user-friendliness.
We obviously appreciated the announcement. It shows that the company is growing and respected companies trust the IDDR’s systems. Although the news were good, still the share price reaction was not positive. Furthermore, on September 11, 2017, it noted that revenue from this new contract was expected to begin in the first part of the fourth quarter and it will be monthly revenue.
Additionally, on September 13, 2017, the company released a press release reacting to the announcement of sensitive data of 143 million people stolen by hackers from a major credit reporting agency, and impacting almost half the US population. The company explained how IDdriven can help prevent this type of attacks:
“The internal threat of data leaks and data breaches is real and is something that has to be mitigated with automated identity and access management systems like IDdriven. A problem that is growing as corporations are storing more personal and sensitive data and the ability to sell and monetize this data by ex/disgruntled employees is easier than ever before.The control of over who has access to data, and the rigorous enforcement of certification of that access is a very important tool to make sure that your data can only be accessed by people who need to have that access to do their jobs, and have no access to data they do not need. This reduces the risk for unwanted and unneeded data breaches.” Source
What were the news that really made the share price jump?
Checking the stock chart, we concluded that the previous news assessed were not really celebrated by the market. The most remarkable news was released a little bit earlier. On September 1, 2017, the company announced that it had filed an increase in authorized shares to be prepared for the future. The corporate move was said to be executed “to be in a position to start looking at scenarios for potential mergers and acquisitions.” We, like the market, appreciated the announcement.
If the company signs a merger with another company, it will not only gain access to more clients, it will also increase the amount of total assets. Hence, the fact that IDDR will look for other companies to merge is very good news.
Currently trading with a market cap of $0.45 million, IDDR is an exciting story among small caps. With total current liabilities of $4 million and $0.013 million in cash, the news seem to be what drives the share price on this name. Hence, we encourage readers to follow closely the announcements. As we said, if a merger is announced, the share price could jump quite a bit. Furthermore, with data breaches in the news, investors are looking for smart ways to play this trend and IDDR is one name that is popping up.
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Disclosure: We have no position in IDDR and have not been compensated for this article.