Israel-based cybersecurity technology provider Hub Cyber Security agreed a reverse merger on Wednesday with special purpose acquisition company Mount Rainier Acquisition Corp (RNER) that will allow insurance group Axa to exit.
Hub has developed a cybersecurity software platform designed to work with confidential government or corporate information, offering threat protection and end-to-end security functionality to a global client base.
The merged business will be valued at $1.28bn and will take the slot on the Nasdaq Global Market acquired by RNER in a $173m initial public offering in October 2021. The deal will be supported by $50m in private investment in public equity financing from unnamed existing and institutional investors.
Axa had led a $5m series A round for Hub in mid-2020 through corporate venturing unit Axa Ventures, with backing from crowdfunding platform OurCrowd.
Hub has made two acquisitions over the past year: a $21.7m cash and stock deal to buy cybersecurity software developer Comsec and the $146m purchase of consulting and software firm ALD Advanced Logistics Development.
The confidential computing market is expected to reach $54bn by 2026, up from about $2bn in 2021, according to research from Everest Group cited by Hub.
Eyal Moshe, Hub’s chief executive, said: “We have a wide range of game-changing cybersecurity hardware technology and services for better global cyber defence.
“The US is our prime target market for growth and we seek to expand our US operations significantly via this business combination. We are passionate and excited about this opportunity to become publicly listed in the US on Nasdaq and to continue our growth and global expansion.”
