- Cycurion serves a massive market for cybersecurity solutions estimated at $174 billion with significant secular tailwinds for growth given the rapid proliferation and severity of cyber threats;
- Cycurion provides Managed Security, Managed IT and Consulting/Advisory services and solutions. In addition, Cycurion offers the Cycurion ARx Security platform which is a multilayer software platform that consists of a Web Application Firewall, Bot Mitigation and Geo Gating;
- Cycurion’s platform is built on a set of proprietary algorithms that provide multiple layers of protection from attacks that provides the C-Suite with real-time information on the organization’s cyber posture;
- Established base of blue-chip clients and partners supported by a highly skilled team of engineers, many with high-level security clearances;
- Company will be led by veteran technology innovator, Emmit McHenry, CEO;
- Combined company anticipated to have an implied initial enterprise value of approximately $170.44 million, and the transaction is expected to deliver cash proceeds of around $113.31 million to Cycurion (assuming no redemptions) to advance Cycurion’s growth strategy fueling organic growth initiatives, investments in technologies and staff and strategic acquisitions; and
- The transaction is expected to be completed in the first quarter of 2023.
MCLEAN, VA & NEW YORK, NY / ACCESSWIRE / November 22, 2022 / Cycurion, Inc. (the “Company” or “Cycurion”) a leading provider of tech-enabled cybersecurity solutions, and Western Acquisition Ventures Corp.(NASDAQ:WAVS) (“Western”), a special purpose acquisition company, today announced they have entered into a definitive business combination agreement.
Emmit McHenry, Founder, Chairman and Chief Executive Officer, Cycurion said, “Cybersecurity solutions have never been more mission critical for organizations of all sizes and types around the world. With the proliferation of cyber breaches and ransomware attacks and their material impact on organizations and reputations, Boards and C-Suite executives are being held accountable for oversight of cybersecurity risk. This starts with understanding that cybersecurity protection and monitoring solutions are now table stakes.”
“Since 2017, we have been singularly focused on providing cybersecurity solutions to federal, state and local governments, civilian, defense and judicial agencies, as well as commercial clients across various industries. We established our reputation by providing mission-critical cybersecurity support to multiple Federal government agencies, which positions us well to expand our reach to the commercial market. We have a talented group of engineers, many with top-level security clearances. Cycurion provides clients with a unique integrated dashboard that allows C-Suite executives and management to monitor cyber threats in real time.”
“We are excited to become a publicly traded company and expect that we will continue to grow through both organic investments and strategic acquisitions. With regard to acquisitions, we will build upon our successful track record of acquiring cybersecurity services and technology providers that enhance our leading-edge platform to protect our clients against the systemic, existential threat of cyberattacks to their businesses, customers and reputations.”
Stephen Christoffersen, CEO and Director of Western Acquisition Ventures, said, “We are thrilled to partner with Emmit McHenry and the team at Cycurion to advance their important vision. Cycurion is well-positioned for commercial success with an enormous market opportunity and secular tailwinds to support growth. Demand for cybersecurity products and services is rapidly accelerating and the market is expected to reach $174 billion in 2024, while the total costs of cybercrime attacks could reach $10.5 trillion by 2025. The Company has distinguished itself as a multi-layered SaaS solution provider that protects clients’ digital assets, while minimizing false positives and has established partnerships and blue-chip clients in the government and commercial sectors. Importantly, the Company is led by an experienced management team with a track record of successfully scaling technology companies and a Board of Directors with broad business experience and corporate governance expertise.”
Cycurion
Headquartered in McLean, Virginia, Cycurion is addressing the growing risk of cyber-piracy with its unique solutions that protect sensitive data and prevent privacy breaches for clients, partners and organizations. With a deeply skilled staff of 80 technology veterans, many of whom have high-level security clearances, Cycurion has developed a multi-layered SaaS solution to protect digital assets while minimizing false positives and reducing threats to data breaches. Cycurion has served customers across federal, state and local government agencies as well as commercial partners. Key clients and partners have included the United States Department of Defense, the Defense Intelligence Agency, the Department of Homeland Security, the United States Navy, KPMG, Verizon, AT&T, General Dynamics and Northrop Grumman.
Since its founding in 2017, Cycurion has built an end-to-end offering of cybersecurity protection that serves multiple Federal Government and commercial organizations. The Company has three wholly owned subsidiaries, Axxum Technologies LLC, Cloudburst Security LLC and Cycurion Innovation, Inc. Axxum Technologies is a cybersecurity provider that has performed work within multiple sub-agencies of the Department of Homeland Security, United States Administrative Courts and multiple state and local organizations. Cloudburst Security provides innovative cybersecurity services to both government and commercial organizations, protecting their integral data and information assets. Cycurion Innovation has a line of products that allow customers to improve their cyber posture with its Multi-Dimensional Protection (“MDP”) SaaS platform.
Following completion of the business combination, Cycurion will continue to be led by its experienced leadership team, including Founder & CEO Emmit McHenry and the existing management, Alvin McCoy, CFO, Kurt McHenry, COO and Ami Ahnine, CTO.
Founder Emmit McHenry brings more than 43 years of innovation, entrepreneurship and leadership to Cycurion. Mr. McHenry also founded Network Solutions, Inc., the world’s first internet domain provider that oversaw the creation of “.com”, “.net”, “.edu” and “.gov” domains, which was ultimately sold to VeriSign for $21 billion.
Transaction Overview
The business combination values Cycurion at an implied enterprise value of approximately $170.44 million. Upon the transaction’s closing, and assuming no redemptions by Western’s stockholders, Cycurion will have approximately $115.91 million in cash, resulting in a total pro forma equity value of approximately $271.63 million. Cash proceeds raised in the transaction will be used to fund operations, support growth, strategic acquisitions and for general corporate purposes. The proceeds will be funded through a combination of Western’s approximately $116.77 million cash in trust, assuming no redemptions by its stockholders, and up to $5.00 million in the form of a PIPE investment from institutional investors.
Upon the transaction’s closing, the combined company will be named Cycurion, Inc. and will be listed on NASDAQ.
The boards of directors of both Western and Cycurion have unanimously approved the proposed transaction. The closing is subject to the approval of Cycurion’s stockholders and Western’s stockholders and other customary closing conditions, including Western’s registration statement (the “Form S-4”) being declared effective by the Securities and Exchange Commission (the “SEC”) and NASDAQ’s approval of the continued listing of the combined company’s shares. It is currently anticipated that the transaction will close, assuming satisfaction of such closing conditions, by the end of the first quarter of 2023.
Advisors
A.G.P./Alliance Global Partners is serving as the exclusive financial advisor to Western. Clark Hill LLP is serving as the legal advisor to Cycurion and J.P. Galda & Co. is serving as the legal advisor to Western. Financial Profiles, Inc. is serving as investor relations advisor to Cycurion and Western.
About Cycurion
Cycurion is a McLean, Virginia-based technology enabled cybersecurity company, providing proprietary innovative solutions to Federal, State and Local government agencies and commercial partners. The Company’s software-based technology provides multiple layers of defense to stop penetrations on the front end, as well as monitors and detections on the back end. Leveraging its team of deeply skilled technology veterans with high-level security clearances, Cycurion combines its unique platform with a suite of services for Government agencies, C-Suite executives and Boards of Directors to access and process information allowing them to monitor the security profile of their network. For more information, visit Cycurion’s website.
