ZeroFox, an AI-based cybersecurity platform, has announced a merger with the special purpose acquisition company (SPAC), L&F Acquisition Corp (LNFA). As part of the transaction, the company has also acquired the digital privacy and data breach response services provider IDX, resulting from a long-standing partnership between the two companies. The combined entity “ZeroFox Holdings” will become a publicly-traded company with an expected equity value of USD 1.4 billion, and will commence trading on the New York Stock Exchange (NYSE) under the ticker “ZFOX” in H1 2022.

ZeroFox received more than USD 250 million in cash through the transaction, comprising USD 175 million from LNFA’s trust account and USD 170 million in growth capital financing led by Monarch Alternative Capital LP and other participating investors. Public equity investors will hold more than 11% stake, and private investors of the USD 170 million funding round will hold a 10% stake in ZeroFox. The company expects to channel the funding toward expansion initiatives in the cybersecurity space, invest in AI capabilities, and scale its team.

Founded in 2003, IDX (Identity Theft Guard Solutions) provides a proprietary digital privacy platform to deliver customized post-breach response services and identity protection.

The acquisition of IDX will provide ZeroFox with external threat protection and data breach response capabilities to address the full lifecycle of external cyber threats. The combined entity will collectively generate over 90% of revenues from recurring platform subscriptions, will house more than 650 employees, and serve almost 2,000 customers.