ZeroFox Divests IDX to Kingswood: A Strategic Move
Deal News | Nov 25, 2024 | Ropes & Gray
ZeroFox, a leader in external cybersecurity software-as-a-service, announced the divestment of its subsidiary IDX to Kingswood Capital Management. IDX is noted for its expertise in post-breach forensics and regulatory compliance. This transaction supports ZeroFox's strategic emphasis on core markets, including digital risk protection, threat intelligence, and attack surface management. The deal highlights ZeroFox's dedication to innovation and service excellence. Ropes & Gray acted as the legal advisor for ZeroFox and its controlling sponsor, Haveli Investments, with a team that included specialists in private equity, IP transactions, employment, tax, mergers and acquisitions, executive compensation, litigation, and cybersecurity. The transaction, already signed and closed, was officially announced on November 25.
Sectors
- Cybersecurity
- Private Equity
- Legal Advisory
Geography
- United States – The companies involved, including ZeroFox and Kingswood Capital Management, operate primarily within the United States.
Industry
- Cybersecurity – The article focuses on ZeroFox's divestment of its cybersecurity subsidiary IDX, emphasizing external cybersecurity, digital risk protection, threat intelligence, and attack surface management.
- Private Equity – Kingswood Capital Management's acquisition of IDX reflects a strategic private equity investment, while Ropes & Gray's advisory role suggests involvement in significant private equity transactions.
- Legal Advisory – Ropes & Gray provided legal advisory services for this transaction, reflecting their role in corporate and M&A legal processes.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ZeroFox | The Selling Company | Companies | A leader in external cybersecurity software-as-a-service focusing on digital risk protection and threat intelligence. |
| IDX | The Target company | Companies | A subsidiary of ZeroFox specializing in post-breach forensics, incident response, and regulatory compliance support. |
| Kingswood Capital Management | The Bidding Companybuyer | Companies | A private equity firm known for acquiring and managing investments across various industries. |
| Ropes & Gray | Legal Advisor | Companies | Provided legal advisory services to ZeroFox and its sponsor Haveli Investments during the divestment of IDX. |
| David Hutchins | Private Equity Partner | People | |
| Joshua Coombes | Associate | People | |
| Emily Karlberg | IP Transactions Partner | People | |
| Richard Kidd | Employment Partner | People | |
| Tristan Evans-Wilent | Tax Partner | People | |
| Scott Pinarchick | Tax Partner | People | |
| Sarah Young | Mergers & Acquisitions Partner | People | |
| Matt Jones | Executive Compensation & Employee Benefits Partner | People | |
| Samer Musallam | Litigation & Enforcement Partner | People | |
| Ed McNicholas | Data, Privacy & Cybersecurity Partner | People |