Menu Icon
Refresh Miami Logo
Search Icon
Sign Up Sign In

Appgate, a Cyxtera spinoff, will soon be a public company and is valued at $1B

Nancy Dahlberg
Nancy Dahlberg
PinLinkedIn

Serial tech entrepreneur Manny Medina was a believer in #MiamiTech before there was much tech. Today, one of his companies is announcing the Magic City will soon have a publicly traded tech company valued at $1 billion.
Miami-based cybersecurity company Appgate, a spinoff of Medina’s Cyxtera Technologies, will become that public company. Appgate has entered into an agreement to merge with a publicly traded shell company Newtown Lane Marketing, the companies announced this morning.
Once the transaction is consummated, expected in the second quarter, Appgate will become a public company with significant financial resources to accelerate growth, scale, and go-to-market strategies, the companies said. It is expected to  begin trading on the Nasdaq or NYSE at that time.
Under terms of the deal, Appgate’s existing investors, private equity firms Medina Capital and BC Partners, will retain 74.4% ownership of the merged company and remain majority shareholders.
Appgate also announced today that “a leading alternative investment manager” with over $12.5 billion in assets under management is investing up to $100 million in convertible notes at a $1 billion post-money valuation. The investor was not disclosed.
Appgate, based in Miami with more than 360 employees, enables rapid, effective, and scalable Zero Trust cybersecurity for private enterprises and government entities. Through its cloud and hybrid security products, Appgate shields more than 650 organizations, including Nowegian Cruise Lines and Fifth-Third Bank, against cyber threats. The company was spun out of Cyxtera Technologies as a standalone company in January 2020.
Appgate believes it is well positioned in its cybersecurity market that is expected to reach $38 billion by 2025.
“This is a tremendous time of growth in our industry,” Appgate CEO Barry Field said in a statement. “Appgate is displacing outdated, easily compromised, traditional network security, such as VPNs and firewalls, by using cutting-edge software designed around the principles of Zero Trust. Appgate is the partner of choice for forward thinking enterprises and federal customers who recognize the importance of adopting a Zero Trust strategy and preventing damaging attacks like ransomware.”
Said Manny Medina, executive chairman of Medina Capital: “Today’s announcement is the natural next step in Appgate’s evolution. As a public company, we will be able to continue to innovate, stay ahead of emerging security threats, and accelerate our revenue growth. All of that enables our customers, both private and public, to operate securely and with peace of mind.”
Medina, Field and other members of Appgate’s senior management team and board of directors are expected to continue to lead the company post-merger.
In addition to Medina Capital, Medina founded and launched Cyxtera Technologies in 2017 and eMerge Americas in 2014, Starting it all, Media founded Terremark Worldwide, the data services company he led and sold  to Verizon Communications for $1.4 billion in 2011.
Follow @ndahlberg on Twitter and email her at [email protected].

Nancy Dahlberg
Latest posts by Nancy Dahlberg (see all)