IronNet Cybersecurity is set to go public through a merger agreement with LGL Systems Acquisition (NYSE: DFNS), a special purpose acquisition company, as part of efforts to pursue growth initiatives and expand its portfolio of cybersecurity offerings.
The combined company is estimated to have a pro forma equity value of $1.2 billion upon the transaction’s closing, which is expected to conclude in the third quarter of 2021, and will trade on the New York Stock Exchange using the ticker symbol “IRNT,” according to a joint statement released Monday.
IronNet was founded in 2014 by Keith Alexander, a retired U.S. Army general who also serves as the company’s chairman of the board and co-CEO. The company’s Collective Defense platform helps detect cyberattacks using artificial intelligence-driven behavioral analytics. The platform consists of IronDefense, a network detection and response tool, and IronDome, a cloud-based technology that analyzes threat detections and shares intelligence to clients in real time.
“Today marks an important milestone as we work to advance IronNet’s ability to defend enterprises, sectors and nations against highly organized cyber adversaries and increasingly sophisticated attacks,” said Alexander, a previous Wash100 awardee.
Upon closing of the merger and assuming no redemptions by LGL stockholders, IronNet’s existing shareholders will hold about 72 percent of the fully diluted shares of common stock in the combined entity.
The combined company will operate as IronNet Cybersecurity and is expected to receive net proceeds worth approximately $267 million, including $125 million through a private investment in private equity backed by Emles Advisors, Weiss Asset Management, The Phoenix Insurance, Bridgewater Associates, ForgePoint Capital and Kleiner Perkins.
Guggenheim Securities acts as exclusive financial and capital markets adviser to IronNet. Cooley advises IronNet on the transaction’s legal aspect.
Barclays serves as exclusive financial adviser to LGL, while Paul Hastings acts as the company’s legal counsel.