Warburg Pincus offers to buy control of cybersecurity co Cyren

cyber security

The US private equity firm has invested $19.6 million for a 21.3% stake in the Israeli company and offered to buy a 75% stake.

US private equity firm Warburg Pincus has invested $19.6 million in Israeli cloud Internet security solutions developer Cyren Internet Security (TASE: CYRN; Nasdaq: CYRN). Warburg Pincus has acquired from Cyren 10.6 million shares for $1.85 per share for a 21.3% stake.

Warburg Pincus has also announced its intention to commence a "Special Tender Offer" pursuant to Israeli law to increase its ownership in Cyren, up to a maximum of 75% of Cyren's shares (assuming the exercise of "in-the-money" options and conversion of Cyren's convertible notes). Cyren's board of directors has resolved to recommend in favor of shareholders tendering their shares in the offer, subject to the terms of the purchase agreement between Cyren and Warburg Pincus.

Cyren chairman and CEO Lior Samuelson said, "We are honored to receive this investment from Warburg Pincus, one of the world's largest and most successful private equity growth funds. Warburg Pincus truly understands Cyren's vision for revolutionizing the cloud security market, and we feel that their financial and operational support will help accelerate Cyren's growth plans."

"The cloud-based security market is large and growing, and enterprise customers are looking for companies that can provide them with a full portfolio of solutions," commented Cary Davis, Managing Director, Warburg Pincus. "Lior and the Cyren team have established the company as a leading platform to provide those cloud-based solutions, and we look forward to our partnership together."

Warburg Pincus will offer to purchase up to 31.5 million shares at $2.50 per share in cash. If more than the maximum number of shares offered to be purchased in the offer are tendered, Warburg Pincus will purchase shares on a pro rata basis. On November 6, 2017, the last trading day before Warburg Pincus announced its intention to launch the offer, the closing sale price of Cyren shares was $1.65 on Nasdaq and NIS 5.998 on the Tel Aviv Stock Exchange ($1.71 based on an exchange rate of NIS 3.513 per United States dollar as of November 6, 2017). The offer will be open to all Cyren shareholders who wish to tender their shares.

Based in Herzliya, more than 1.3 billion users around the world including Google, Microsoft and Check Point have Cyren's 100% cloud internet security solutions to protect them against cyberattacks and data loss every day. Powered by the world's largest security cloud, Cyren delivers fast time to protection from cyber threats with Security-as-a-Service for web, email, sandboxing, and DNS for enterprises, and embedded threat intelligence solutions for security vendors and service providers.

Published by Globes [online], Israel business news - www.globes-online.com - on November 7, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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