IronNet Cybersecurity Set For NYSE Listing Via SPAC Merger With LGL Systems

Cybersecurity company IronNet Cybersecurity, Inc inked a business combination agreement with SPAC LGL Systems Acquisition Corp DFNS to fast-track its growth trajectory in the cybersecurity market and exploit the strong demand for newer ways of defense against growing cyber threats.

• The combined company would be retitled “IronNet Cybersecurity, Inc” and begin trading under the symbol “IRNT” in the NYSE.
• IronNet’s cloud-based, scalable solution, IronDome, analyzed threat detections across companies within an industrial sector to identify broad attack patterns and offered anonymized intelligence back to all customers in real-time.
• This transaction is expected to drive further market adoption of IronNet’s Collective Defense Platform in a growing $25 billion security segment and fast-track its innovation-pipeline of additional offerings.
• LGL currently held $173 million cash in trust and would combine with IronNet at an estimated enterprise value of $927 million, implying an equity valuation of $1.2 billion. IronNet’s existing stockholders would hold 72% of the stock in the combined company, IronNet Cybersecurity, following the closing of the business combination.
• The combined company is expected to receive $267 million in net proceeds, including $125 million from a PIPE transaction at $10 per share.
• IronNet intends to use the cash proceeds to fast-track revenue growth, expand its product portfolio, and for working capital requirements.
• The transaction had been universally approved by the board of both LGL and IronNet.
• Guggenheim Securities was the exclusive financial advisor and capital markets advisor to IronNet.
• Price action: DFNS shares traded higher by 1.2% at $10.15 on the last check Monday.

See also: How to Invest in SPACs