Cybersecurity company ZeroFox said this morning that it will buy digital privacy protection platform IDX and go public through a merger with blank-check firm L&F Acquisition Corp, in a deal that values the combined entity at $1.4bn (£1.1bn).
With the pandemic having forced businesses to shift to a hybrid working model, demand for protection against digital threats has boomed, benefiting companies in the cybersecurity sector, according to Reuters.
Companies like SentinelOne have taken advantage of this surge in demand to list their shares, while Arctic Wolf, another cybersecurity startup, is also seeking to go public, Reuters reported last month.
Merger activity in the special purpose acquisition company (SPAC) market is also ticking back up after a lean run earlier this year due to tightening grip from the U.S. Securities and Exchange Commission.
Under the ZeroFox merger deal, Monarch Alternative Capital, Victory Park Capital and others will invest $170m (£129m) as part of the financing.
The Maryland-based ZeroFox is a business software company that provides customers with threat intelligence to disrupt phishing, impersonations and other malicious activities. Its customers include Intel and Microsoft , according to its website.
SPACs are listed firms with no business operations other than seeking a private company to merge with.