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Warburg Pincus Buys Stake in Email Protection Company Cyren

Warburg Pincus Buys Stake in Email Protection Company Cyren

The private equity acquired a 21.3% stake in Nasdaq-listed Cyren for $19.6 million and plans to increase ownership by buying up to 75% of the company’s shares

Dror Reich | 23:51  07.11.2017

New York-based private equity firm Warburg Pincus, LLC has bought a 21.3% stake in Israel-linked, Nasdaq-listed internet security company Cyren Ltd. for $19.6 million, the companies announced Tuesday. Warburg Pincus paid a premium of 12% on Cyren’s stock price on market close Monday, paying $1.85 a share. The companies further announced the private equity intends to increase its ownership in Cyren, by buying shares for up to $2.5 a share, and up to an ownership of 75% of Cyren.

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The Manhattan-headquartered private equity founded in 1966 has over $44 billion in assets under management. In 2015 it participated in a $100 million investment in cybersecurity firm CrowdStrike Inc. In 2016, it participated in a $25 million investment in Israeli founded, Delaware-registered mobile security company Zimperium Inc.

Warburg Pincus president Timothy Geithner Warburg Pincus president Timothy Geithner Warburg Pincus president Timothy Geithner

Founded as Commtouch Software Ltd. in Israel in 1991, Cyren started out as a provider of email services. After going public on Nasdaq in 1999, the company pivoted to developing and selling anti-spam solutions. In 2010 and 2012 the company made two acquisitions, adding anti-phishing technologies, and email protection service to its offering. In 2014 it rebranded as Cyren. In 2016, the company reported $40 million in sales and a $6.8 million net loss. The company lists Google and Microsoft as customers. Cyren is headquartered in McLean, Virginia and has offices in Europe and Israel.

"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," said Cary Davis, managing director at Warburg Pincus as part of the companies' joint announcement.

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