On Wednesday, Wall Street analysts revised their ratings for ZeroFox (NASDAQ:ZFOX) following the announcement of its acquisition by Haveli Investments. ZeroFox, a cybersecurity firm, has agreed to be sold to the private equity firm in an all-cash deal with an enterprise value of approximately $350 million, or $1.14 per share.
Cantor Fitzgerald has downgraded ZeroFox to Neutral from its previous rating. The firm's analysts suggest that the transition to private ownership will alleviate the pressures of market volatility for ZeroFox, providing the management with a more focused environment for driving growth and profitability. The expected completion of the acquisition is in the first half of 2024, pending the satisfaction of usual closing conditions, which includes obtaining shareholder and regulatory approvals. Cantor Fitzgerald anticipates that the near-term stock performance for ZeroFox will be closely tied to the finalization of this deal.
Stifel has also adjusted its rating, downgrading ZeroFox to Hold. The adjustment reflects the impending change in the company's ownership structure and the anticipated impact on its stock performance.
The acquisition by Haveli Investments is poised to mark a significant shift for ZeroFox, as it transitions from a publicly traded company to a privately held entity. The agreed price per share represents a valuation of the company at the time of the deal.
Investors and market observers are now watching closely as ZeroFox prepares for the shifts in its operational and financial structure, with the closing of the transaction being the next major milestone in this process.
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