Cyren Ltd (NASDAQ: CYRN) shares rose Tuesday after the company reported a strategic investment from Warburg Pincus Funds.
The global Internet Security-as-a-Service provider, based in McLean, Virginia, reported Monday that an entity controlled by funds affiliated with Warburg Pincus has acquired from Cyren approximately 10.6 million shares for $1.85 per share, representing gross proceeds of approximately $19.6 million to Cyren.
As a result of the investment, Warburg owns approximately 21.3% of Cyren's outstanding shares.
Said CEO Lior Samuelson “We are honored to receive this investment from Warburg Pincus, one of the world's largest and most successful private equity growth funds.
"Warburg Pincus truly understands Cyren's vision for revolutionizing the cloud security market, and we feel that their financial and operational support will help accelerate Cyren's growth plans."
It has also been reported that Warburg Pincus will offer to purchase up to approximately 31.5 million shares at $2.50 per share in cash. If more than the maximum number of shares offered to be purchased in the offer are tendered, Warburg Pincus will purchase shares on a pro rata basis.
The company website notes that more than 1.3 billion users around the world rely on Cyren's 100% cloud internet security solutions to protect them against cyber attacks and data loss every day.
For its part, Warburg Pincus is a leading global private equity firm focused on growth investing. The firm has more than $44 billion U.S. in private equity assets under management. The firm's active portfolio of more than 150 companies is highly diversified by stage, sector, and geography.
CYRN shares catapulted 66 cents, or 40% late Tuesday morning, to $2.31.
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