Mount Rainier Acquisition Corp., a special purpose acquisition company (SPAC), has purchased Israel cybersecurity company Hub Cyber Security at an enterprise value of $1.28 billion, the companies said. The deal is expected to be finalized in Q3 of 2022.
This is technology M&A deal number 300 that MSSP Alert and sister site ChannelE2E have covered so far in 2022.
Hub will keep its name following the merger with Mount Rainier. It also will be publicly traded on Nasdaq under the ticker "HUBC."
A SPAC or “blank check” company is designed to raise funds in an initial public offering (IPO) with the aim of acquiring a private business. That private company then becomes public as result of the merger, Reuters notes. After a hot start in 2021, the SPAC trend cooled off considerably in 2022 because there was too much money chasing too few quality deals, ChannelE2E reports.
A Closer Look at Hub Security
Still, Hub Security proves that some SPAC deals are still happening.
Hub Security was launched in 2017 by veterans of the 8200 and 81 elite intelligence units of the Israeli Defense Forces. It specializes in cybersecurity solutions that commercial and government organizations can use to secure their sensitive data. Key services include:
- Application Security: Enables organizations to discover and address web application vulnerabilities.
- Governance, Risk & Compliance (GRC): Provides insights into compliance regulations and enables organizations to manage risks in accordance with data security mandates.
- Threat Modeling: Helps organizations identify potential threats and attack vectors across their systems.
In addition, Hub provides several cybersecurity products, including:
- D.Storm: Lets organizations simulate distributed denial-of-service (DDoS) attacks.
- Healthcare & AI Security: Allows healthcare organizations to use machine learning and artificial intelligence to guard against cyberattacks.
- Quantum Secured Cloud Workspace: Offers a secure environment for cloud-based documents.
Hub offers cybersecurity services in more than 30 countries.