SaaS cybersecurity firm ZeroFox mentioned on Monday that it has accomplished a deal to amass digital privateness safety platform IDX and merge with particular goal acquisition firm L&F Acquisition Corp. to create a brand new entity with an anticipated fairness worth of roughly $1.4 billion.

The corporate will probably be renamed ZeroFox Holdings as soon as the deal goes by and may have the ticker image “ZFOX.” The businesses anticipate the deal to shut within the first half of 2022. 

Monarch Various Capital LP and a number of other different companies are additionally investing $170 million within the deal to merge the businesses. 

James Foster, chairman and CEO of ZeroFox, mentioned the transaction permits them to create “the business’s first publicly traded firm that’s targeted on offering an enterprise exterior cybersecurity SaaS platform.” 

“We intend to leverage this progress capital to proceed investing in our synthetic intelligence capabilities, scaling our go-to-market efforts, and increasing our world-class workforce,” Foster mentioned. 

The corporate was based in 2013 and now has clients in additional than 50 international locations. 

Foster instructed ZDNet that the merger is their finest path ahead within the present market setting as a result of it gives all the advantages that come from an IPO and being traded on the New York Inventory Alternate, with out requiring them to undergo a conventional IPO course of, which he referred to as “restrictive, time-consuming, expensive and unsure.”

“Turning into a publicly traded firm is the logical subsequent step to supporting our improvement and accelerating our progress. This new supply of capital will present larger monetary flexibility, along with the mandatory scale and sources to successfully execute in opposition to our go-to-market technique,” Foster defined, including that IDX is “the nation’s largest supplier of information breach response companies.”

“The mixed SaaS enterprise may have over 650 staff and serve roughly 1,700 clients together with 5 of the Fortune Prime 10 and the most important firms in media, know-how, retail, and vitality. Collectively, over 90% of our revenues will probably be recurring platform subscriptions. The platform will course of billions of information components and shield tens of hundreds of thousands of digital belongings all over the world.” 

IDX CEO Tom Kelly mentioned the cope with ZeroFox is the results of a long-standing partnership between the 2 firms. 

Adam Gerchen, CEO of LNFA and a brand new ZeroFox board member, famous that the corporate is aiming to get a slice of the $51 billion exterior cybersecurity and digital safety market.