Cybereason targeting Wall Street IPO at over $5 billion valuation

Israeli cybersecurity company Cybereason has confidentially filed for a U.S. initial public offering that could value it at more than $5 billion, according to Reuters.

Cybereason, which is backed by SoftBank's Vision Fund 2 and Alphabet Inc's Google Cloud unit, as well as former U.S. Treasury Secretary Steven Mnuchin's investment firm Liberty Strategic Capital, has finalized underwriters for its IPO, which could come in the second half of the year, sources said.

The sources, who requested anonymity because the discussions are confidential, cautioned that the timing and the size of the flotation were subject to market conditions.

Cybereason declined to comment.

Cybereason, which was founded in 2012 by three Israeli partners, Lior Div, Yonatan Striem-Amit and Yossi Naar, was valued at roughly $3 billion when it raised $275 million from investors last year. It has raised nearly $750 million from investors to date, according to PitchBook.

Large companies and government agencies ramped up spending on cybersecurity services during the Covid-19 pandemic, as employees started working remotely amid widespread lockdowns. Cybereason and other companies in the cybersecurity sector witnessed rapid growth during that period.

Cybereason, which competes with other cybersecurity players like CrowdStrike and SentinelOne, builds artificially intelligent software and offers a variety of services including ransomware protection and prevention of malware attacks.

Cybereason's software is installed across computers, mobile phones and other tech systems. The company also created a subsidiary focusing on preventing malicious operations targeting U.S. government agencies.

Other prominent investors in Cybereason include Lockheed Martin, CRV and Spark Capital.