Cybersecurity Firm Cyren is on the Verge of Going Under
Posted on 02/03/2023
Israeli-founded cybersecurity company Cyren Ltd is on the verge of shutting down. This is after announcing a plan to lay off its entire workforce of 121 employees, including 50 employees in Israel. The McLean, Virginia-based company lost almost its entire market cap over 2022. In 2014, Commtouch changed its name to Cyren. Cyren is a global Internet Security-as-a-Service provider. In 2019, Cyren was delisted from the Tel Aviv Stock Exchange.
On November 6, 2017, a jointly announced that an entity controlled by funds affiliated with Warburg Pincus LLC has acquired from Cyren approximately 10.6 million shares for US$ 1.85 per share, representing gross proceeds of approximately US$ 19.6 million to Cyren. As a result of the investment, Warburg Pincus owns approximately 21.3% of Cyren’s outstanding shares. Then, on November 20, 2017, Warburg Pincus, through WP XII Investments B.V., an entity controlled by funds affiliated with Warburg Pincus conducted a cash tender offer to purchase up to 31,265,358 million ordinary shares of Cyren for US$ 2.50 per share. However, the offer was not completely accepted, but Warburg Pincus nevertheless reached a 51% holding in Cyren after investing an additional US$ 43 million.
In September 2019, Cyren had a rights offering to raise up to US$ 12.5 million. US$ 8 million of this has already been guaranteed by Cyren controlling shareholder Warburg Pincus.
