Israel’s Hub Security Merges With SPAC Firm At $1.28B Valuation

Tel Aviv-based confidential computing cybersecurity solutions provider Hub Security, announced last week it has signed an agreement to merge with Mount Rainier Acquisition Corp. (RNER), a US-headquartered special purpose acquisition company (SPAC) publicly traded on Nasdaq. 

Pending a successful transaction, the combined company will operate under the name, Hub Security, and be listed on Nasdaq under the new ticker symbol, HUBC. 

Hub Security’s current enterprise valuation now stands at $1.28 billion.

The proposed transaction is expected to provide Hub with $176 million in additional cash. Hub has also entered into subscription agreements with Israeli and US institutional investors for of $50 million in public investment private equity (PIPE) funding.

Founded in 2017 by IDF veterans, Hub Security develops and markets cybersecurity solutions for cloud computing, data centers, enterprises, and governments around the world. Clients include insurance companies, commercial banks, payment companies, telecom operators, and governmental entities primarily through long-term contracts on over 30 countries. 

“We have a wide range of game-changing cybersecurity hardware technology and services for better global cyber defense,” said HUB’s founder and CEO, Eyal Moshe, whose current management team will lead the combined company. “The US is our prime target market for growth and we seek to expand our U.S. operations significantly via this business combination. We are passionate and excited about this opportunity to become publicly listed in the U.S. on Nasdaq and to continue our growth and global expansion.”

“Our mission is to find a high quality, well-led, technology-backed business whose high growth potential would be accelerated by merger with our company,” added Mathew Kearney, chairman and CEO of RNER. “HUB meets all these criteria and we are delighted to be able to recommend this business combination to our stockholders. We look forward to working with Eyal and the HUB team through a successful listing.”