HUB Security CEO Eyal Moshe. (Photo Courtesy)
HUB Cyber Security, an Israeli startup, is going public. The company revealed that it will hold an initial public offering (IPO) for which it has already merged with blank-check firm Mount Rainier Acquisition Corp., a Nasdaq traded SPAC in a deal valued at nearly $1.3 billion, becoming the latest company in the space to tap into U.S. capital markets.
An SPAC is a publicly-traded pool of cash with no business activity other than looking for a private firm to merge with and subsequently take public. More and more companies are choosing this route towards their IPOS. The idea here is that a company goes public by merging with an already existing entity, thereby saving on many of the costs involved with an IPO, as well as some of the risks.
The deal is expected to bring in up to approximately $176 million in additional cash to HUB Cyber Security and gross proceeds of approximately $50 million through a private placement.
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This is yet another big IPO expected announced for Israel Startup Nation this month. But HUB Cyber Security is not expecting anywhere near the $50 that Mobileye, the Israeli company owned by Intel that develops automated driving systems, expects to raise. However, that will be Mobileye’s second IPO. But it is more than the $1 Billion that SatixFy Communications, an Israeli startup that offers satellite communication systems based on in-house developed chipsets, expects from its own SPAC merger.
HUB Security was established in 2017 by veterans of the IDF’s 8200 and 81 intelligence units CEO Eyal Moshe and CTO Andrey Laremenko. The company specializes in protecting sensitive commercial information and has an advanced encrypted computing solution for companies and organizations aimed at preventing hostile intrusions and the theft of sensitive commercial information.
Hub offers cybersecurity solutions to, amongst others, the AI, Fintek, and critical infrastructure sectors. The company employs 400 employees, and its offices are located in Israel and the United States.
“We have a wide range of game-changing cybersecurity hardware technology and services for better global cyber defense,” said Moshe about HUB Security. “The U.S. is our prime target market for growth and we seek to expand our U.S. operations significantly via this business combination. We are passionate and excited about this opportunity to become publicly listed in the U.S. on NASDAQ and to continue our growth and global expansion.”
Fey commented, “Island has created a whole new way of thinking about enterprise work. By fundamentally transforming the work environment to be secure-by-design, the Island Enterprise Browser enables organizations to achieve entirely new levels of security, productivity, and IT efficiency. The enthusiasm from our customers and the IT community has been extraordinary.”
