ZeroFox goes public after merger with L&F Acquisition

Cybersecurity has become a hot topic for many organizations after the 2020 United States federal government data breach. This has enabled the value of cybersecurity tools to soar.

One company that has seen its value grow significantly since 2020 is enterprise threat intelligence cybersecurity startup ZeroFox. ZeroFox utilizes AI-driven analysis, intelligence analysts with access to the dark web, breach responses, and disruption services. The software also integrates with an application library with 500 tools.

The company was founded in 2013 and helps companies detect security threats that spawn from social media. This approach enabled the company to raise $154 million in funding and led to a merger with blank-check company L&F Acquisition.

Speaking about the journey of the company, James C. Foster, chairman and CEO of ZeroFox, said: “Since ZeroFox was founded in 2013, we have helped companies address emerging security challenges caused by the transformational shift to a ‘digital everything’ world. This rapid digital transformation has made companies vulnerable to attackers, resulting in the highest breach rate the industry has ever seen.

“We believe that external cybersecurity must be a top-three priority and part of the critical security tech stack for chief information security officers because perimeter firewalls and internal endpoint agents alone are not enough to protect company assets and customers.”

On the back of this merger, the company has become a publicly-traded company with an expected equity value of roughly $1.4 billion.

The impact of this deal

As part of the merger with L&F acquisition, ZeroFox will acquire digital privacy protection company IDX. The acquisition will lead to the companies being listed under the ticker symbol “ZFOX” and will lead to a product that intends to cover the entire lifecycle of external cyber threats.

Looking ahead, Business Wire reported that Foster said: “With this transaction, we are creating the industry’s first publicly-traded company that is focused on providing an enterprise external cybersecurity SaaS platform.

“We intend to leverage this growth capital to continue investing in our artificial intelligence capabilities, scaling our go-to-market efforts, and expanding our world-class team. We believe this will create value for our existing and new shareholders whilst we focus on growth, expanding our triple-digit net retention, and delighting our customers.”

Adam Gerchen, CEO of L&F Acquisition, shared this enthusiasm: “With its leading global position, seasoned management team and proven technology, ZeroFox is poised to capture a significant share in the growing, $51 billion external cybersecurity and digital protection market.

“This is a transformational deal and I am excited to join the ZeroFox Board of Directors to help accelerate ZeroFox’s growth and integration with IDX in its new chapter as a public company.”

With an incredible expected valuation and a public offering, the future looks bright for the company now known as ZFOX.