Cybersecurity firm ZeroFox is set to go public via SPAC merger after the deal was approved on August 2nd, setting up one of the year’s only listings of a software company valued at $1+ billion. SPAC L&F Acquisition will merge with both ZeroFox and fellow cybersecurity firm ID Experts at a combined enterprise value of $1.3 billion, forming ZeroFox Holdings, which will trade on the NYSE under the ticker “ZFOX”. A positive early sign, the SPAC’s stock closed on Tuesday above the $10 transaction price, at $14.40, albeit with a currently-low float.
While ZeroFox is coming public at a difficult time for both unprofitable software stocks and SPAC listings more broadly, cybersecurity plays have been somewhat more resilient, and the company now aims to expand its ~40% gross margins, turn profitable, and maintain double-digit growth as it pursues cross-selling opportunities post-merger.
Transaction Details
In December 2021, Victory Park Capital’s SPAC L&F Acquisition announced it would acquire ZeroFox, a provider of cyber threat intelligence software, and ID Experts (“IDX”), a provider of data breach response services. The deal values the combined company at an EV of $1.3 billion, or...
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