Israeli cybersecurity solutions company HUB Security (TASE: HUB) announced this morning that it has signed a memorandum of understanding (MoU) to merge with special purpose acquisition company (SPAC) Mount Rainier Acquisition Corp., which is traded on Nasdaq, at a company valuation of $1.28 billion.
The merger will provide HUB with $172 million in additional cash, although redemptions by Mount Rainier's public stockholders could reduce that amount. HUB also said that it has entered into subscription agreements with Israeli and American institutional investors for gross proceeds of $50 million in public investment private equity (PIPE) funding.
HUB Security provides cybersecurity solutions for cloud computing and data centers. Its flagship Hub-on-Chip solution, reduced to IoT, is for credit cards, cars, cameras and the like. The company is traded on the TASE after merging with ALD last year, and has a market cap of NIS 820 million. The company's share price rose 21% today following the news.
HUB Security announced that it had agreed a SPAC merger at the end of January but gave no financial details at the time.
The merger is being supported by investment banks A-Labs and Oppenheimer and Sullivan and Worcester (Tel Aviv) law firm is acting as legal advisor to the deal.
Published by Globes, Israel business news - en.globes.co.il - on March 23, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.