Dec 16 (Reuters) - Digital identity verification and fraud prevention company TeleSign is going public through a merger with a blank-check firm via a $1.3 billion deal, the acquisition vehicle said on Thursday.

Dealmaking by special purpose acquisition companies has ticked up recently after a lull earlier this year due to chilly reception from investors and increasing scrutiny from regulators.

However, it is still down compared to last year when such mergers emerged as one of the hottest trends on Wall Street. High-profile mergers including those of digital media company BuzzFeed Inc and Zoom-backed Cvent have recently been torpedoed by high investor withdrawals.

TeleSign's deal with North Atlantic Acquisition Corp will fetch proceeds of $487 million, including a $107.5 million private investment in public equity.

California-based TeleSign helps businesses to secure their digital identities, prevent fraud and establish secure communications.

TeleSign expects to generate revenue of $391 million in 2021 and increase it to nearly $1.1 billion in 2026.

Special purpose acquisition companies, or SPACs, are listed but have no business operations, except hunting for a private company to take public. (Reporting by Niket Nishant in Bengaluru; Editing by Shounak Dasgupta)