Startups
Acquisitions / Cybersecurity

‘LookingGlass is joining the Fox Den’: ZeroFox completes $26M cyber acquisition

The acquisition of Reston, Virginia-HQed LookingGlass comes several months after Baltimore's ZeroFox went public with a $1 billion valuation.

ZeroFox's mascot outside its South Baltimore/Riverside offices. (Courtesy photo)
Correction: An earlier version of this article stated that ZeroFox went public on the Nasdaq five months before it acquired LookingGlass. It instead went public about eight months before the acquisition. (4/25/2023, 6:04 p.m.) 

A leader in digital risk protection announced its acquisition of a global cybersecurity leader in a Monday tweet featuring a straightforward blue, red, and white graphic that reads: “LookingGlass is joining the Fox Den.”

Just about eight months after the Baltimore-based ZeroFox went public on the Nasdaq with a valuation of over $1 billion, the cloud-based security and analytics product suite provider has announced its acquisition of LookingGlass Cyber Solutions in a deal comprising 9.4 million shares of stock, convertible debt and cash.

LookingGlass is a cybersecurity-focused company from Reston, Virginia that was founded in Baltimore and itself acquired several properties — including Goldman Sachs’ in-house cybersecurity platform — during the 2010s. LookingGlass CEO Bryan Ware, a former assistant director of the Cybersecurity and Infrastructure Security Agency within the federal Department of Homeland Security, will join ZeroFox’s executive team as part of the transaction. 

“We are thrilled to join forces with ZeroFox and look forward to the opportunities this will bring to our customers and employees,” Ware said in an emailed statement. “Our shared values and combined vision will allow us to deliver even more value to the market and achieve greater success together.”

ZeroFox CEO James Foster told Technical.ly the acquisition grows the company’s own cybersecurity capabilities, as well.  The transaction brings all LookingGlass employees, products and customers into ZeroFox’s portfolio. 

“The acquisition of LookingGlass bolsters ZeroFox’s strategy of providing customers with a single end-to-end platform for protecting their organization from increasingly external cyber threats,” Foster said in a separate email to Technical.ly, adding: “Integrating LookingGlass’s industry-leading attack surface and threat intelligence capabilities into the ZeroFox External Cybersecurity Platform will enable our customers to build a robust security posture by providing world-class visibility into the external attack surface assets and vulnerabilities, including improved actionable intelligence to disrupt emergent threats.”

Throughout the process, ZeroFox received advice from Stifel Financial Corp., a diversified global wealth management and investment banking company. The acquisition was successfully completed on Monday, and ZeroFox disclosed additional information during its prior Q1 FY24 earnings call.

A 1999 article in the Harvard Business Review noted that shareholders of acquiring companies fare worse in stock transactions over time than in cash transactions. Despite this longstanding belief among some leading economists, Foster has faith in the acquisition model, which ZeroFox used to grow earlier on.

“Acquisitions have long been a part of ZeroFox’s innovation strategy,” Foster said. “We consider acquisitions strategically important to accelerate our position as a global cybersecurity innovator and improve service delivery to the organizations that rely on us for protection against external cyber threats.”  

Companies: ZeroFOX

Before you go...

Please consider supporting Technical.ly to keep our independent journalism strong. Unlike most business-focused media outlets, we don’t have a paywall. Instead, we count on your personal and organizational support.

3 ways to support our work:
  • Contribute to the Journalism Fund. Charitable giving ensures our information remains free and accessible for residents to discover workforce programs and entrepreneurship pathways. This includes philanthropic grants and individual tax-deductible donations from readers like you.
  • Use our Preferred Partners. Our directory of vetted providers offers high-quality recommendations for services our readers need, and each referral supports our journalism.
  • Use our services. If you need entrepreneurs and tech leaders to buy your services, are seeking technologists to hire or want more professionals to know about your ecosystem, Technical.ly has the biggest and most engaged audience in the mid-Atlantic. We help companies tell their stories and answer big questions to meet and serve our community.
The journalism fund Preferred partners Our services
Engagement

Join our growing Slack community

Join 5,000 tech professionals and entrepreneurs in our community Slack today!

Trending

Major state funding boost means more Maryland college students can get tech internships

Cal Ripken Jr. essay: The MLB legend explains his drive to build STEM centers in schools across the nation

The end of software as technology

Startup302 awards nearly $200,000 to esports, environmental analytics and more

Technically Media