Can cybersecurity bring back the missing software IPO?

Cybersecurity software seller ZeroFox Holdings (ZFOX) begins trading on the Nasdaq on Thursday, following its SPAC merger with L&F Acquisition at an enterprise value of $1.3 billion. The company's billion-dollar listing is a rare sight in a year where software IPOs have virtually disappeared.

Coupled with three major acquisitions this year, including Ping Identity announced on Wednesday, this reinforces the idea that cybersecurity developers may be among the first software companies to list when the IPO market returns. Cybersecurity solutions are often "sticky" and safe from budget cuts targeting discretionary expenses. 

Three major cybersecurity acquisitions in 2022 signal area's resilience
On Wednesday, 2019 IPO Ping Identity (PING) announced it would be acquired by Thoma Bravo for $2.8 billion. That follows the announcement in May that SailPoint (SAIL), a 2017 IPO, would be acquired by Thoma Bravo for $6.9 billion. In March, Google said it would acquire Mandiant (f/k/a FireEye) for $5.4 billion.

Cybersecurity on our Private Company Watchlist
We are tracking several cybersecurity companies that may attempt IPOs this year. See the 10 names we're tracking as 2022-2023 IPO candidates on the IPO Pro version of this story.