Tel Aviv-based HUB Cyber Security and Mount Rainier Acquisition today announced a definitive business combination agreement that values the combined enterprise at $1.28 bilion. If approved, upon closing HUB Security is expected to be listed on the Nasdaq under the new ticker symbol HUBC.
HUB develops and markets confidential computing solutions and services that aim to disrupt cybersecurity for enterprises and governments worldwide.
Cash proceeds from the proposed transaction are expected to consist of up to approximately $176 million of cash held in the SPAC’s trust (before any redemptions and expenses) and approximately $50 million from a PIPE investment anchored by Israeli and American institutional and existing investors. Proceeds from the PIPE are expected to satisfy the minimum cash closing condition.
HUB shareholders will retain 100% of their existing equity holdings and are expected to own approximately 81% of the merged company on a non-fully diluted basis immediately following the closing. Founder & CEO Eyal Moshe will continue to own approximately 6% of the combined company on a pro forma basis, assuming no redemptions. Read more.
