Cybersecurity company Cycurion will merge with the special purpose acquisition company (SPAC) Western Acquisitions Venture Corp. (WAVC) and go public, the companies announced in November.
Virginia-based Cycurion provides managed security, managed IT, and consulting services, featuring a multilayer software platform that offers several layers of protection against cyberattacks. Clients include federal, state, and local governments; civilian, defense, and judicial agencies; and assorted commercial clients.
The combined entity is expected to have an implied initial enterprise value of approximately $170.44 million. The transaction will deliver cash proceeds of around $113.31 million to Cycurion, the companies said.
“With the proliferation of cyber breaches and ransomware attacks and their material impact on organizations and reputations, boards and C-suite executives are being held accountable for oversight of cybersecurity risk. This starts with understanding that cybersecurity protection and monitoring solutions are now table stakes," Emmit McHenry, Cycurion’s Founder, Chairman, and Chief Executive Officer, said in a statement.
The five-year-old company, which employs 80 tech veterans, many of whom have high-level security clearances, will continue to grow through investments and acquisitions, McHenry added.
The cybersecurity solutions market is estimated to be worth $174 billion in 2024, according to WAVC CEO and Director Stephen Christoffersen. “Cycurion is well-positioned for commercial success with an enormous market opportunity and secular tailwinds to support growth,” he said in a statement.
Cycurion’s key clients and partners have included the United States Department of Defense, the Defense Intelligence Agency, the Department of Homeland Security, the United States Navy, KPMG, Verizon, AT&T, General Dynamics, and Northrop Grumman.
Following the transaction, which is expected to take place in the first quarter of 2023, the company’s leadership team will remain in place.