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

Author: Anusuya Lahiri | March 15, 2021 11:33am

Cybersecurity company IronNet Cybersecurity, Inc inked a business combination agreement with SPAC LGL Systems Acquisition Corp (NYSE: 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.

Posted In: DFNS