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Cybersecurity firm ZeroFox set to join the NYSE following a $1.3 billion SPAC merger

August 3, 2022

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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