Cybersecurity Company Appgate Set To Go Public Via Merger With Newtown

Cybersecurity company Appgate will merge with Newtown Lane Marketing, Incorporated NTWN to go public with a $1 billion valuation.
Appgate was spun out of Cyxtera Technologies in January 2020 to capitalize on the cybersecurity industry. An undisclosed investment manager is investing up to $100 million in convertible notes, valuing the company at $1 billion.
BC Partners and Medina Capital will remain Appgate's majority shareholders controlling 74.4% of Newtown's common stock, translating into 157.5 million shares.
Appgate received $50 million as the merger signing amount, with $25 million at closing and an additional $25 million post-closing.
The merger is likely to close by the second quarter of 2021.
Appgate says it has a revenue potential of $40 million in FY21 with a 50% CAGR through FY25.
Appgate's management team will continue to lead the business upon the merger, with Barry Field as the CEO and Rene Rodriguez as the CFO.
Price action: NTWN shares are trading higher by 2,161.4% at $11.50 on the last check Tuesday.