Israel's HUB Cyber Security to list on Nasdaq via $1.3 bln SPAC deal

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A close-up of the head of a "Cyber Horse", made from thousands of infected computer and cell phone bits, is seen on display at the entrance to the annual Cyberweek conference at Tel Aviv University, Israel June 20, 2016. REUTERS/Amir Cohen/File Photo

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March 23 (Reuters) - Israel's HUB Cyber Security (HUB.TA) said on Wednesday it would go public in the United States by merging with a blank-check firm in a deal valued at nearly $1.3 billion, becoming the latest company in the space to tap into U.S. capital markets.

Demand for cybersecurity products has grown over the last couple of years since the onset of the COVID-19 pandemic, which forced global organizations to adapt and secure their systems for a remote working model.

That led numerous players in the sector to raise capital through public listings and private fundraises. SentinelOne Inc (S.N) fetched a $11 billion market capitalization in its New York debut in June, while ZeroFox announced in December it will go public through a $1.4 billion blank-check deal. read more

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The deal with Mount Rainier Acquisition Corp (RNER.O) is expected to have cash proceeds of around $176 million from the special purpose acquisition company's (SPAC) trust, assuming there are no redemptions, HUB said.

The combined company will also receive about $50 million from a private investment in public equity anchored by Israeli and American institutional investors as well as existing shareholders.

HUB Cyber Security (HUB) was founded in 2017 by former members of intelligence units of the Israeli Defense Forces. It operates in more than 30 countries and provides cybersecurity services and computing hardware to enterprises and governments.

Existing shareholders of HUB will own about 81% of the combined company, and Eyal Moshe, HUB's founder and chief executive officer, will continue to hold roughly 7%.

Moshe and HUB's existing management team will continue to lead the new company.

The combined company will be named HUB Security and trade on the Nasdaq under the ticker symbol "HUBC". The deal is expected to close in the third quarter of this year.

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Reporting by Sohini Podder in Bengaluru; Editing by Vinay Dwivedi, Aditya Soni and Amy Caren Daniel

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