Newtown Lane Marketing, Inc. and secure access company Appgate announced they have entered into a definitive merger agreement.
Headquartered in Miami with over 360 employees, Appgate enables cybersecurity for private enterprises and government entities.
“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,” Appgate CEO Barry Field said.
Under terms of the agreement, BC Partners and Medina Capital will remain Appgate’s majority shareholders and control approximately 74.4% of Newtown’s common stock, on a fully diluted basis, which will total approximately 157.5 million shares post-closing assuming Appgate’s receipt of the full $100 million convertible note investment.
Under the terms of the investment, Appgate received $50 million at the signing of the merger agreement to immediately further fuel growth, will receive $25 million at closing, and will receive up to an additional $25 million post-closing.
“We have spent the past several years searching for an outstanding merger candidate for Newtown,” said Jon Ledecky, president and controlling shareholder of Newtown. “In Appgate, we have found an exceptional company led by a proven, world-class management team backed by premier private equity firm, BC Partners, and a highly successful and innovative technology entrepreneur in Manny Medina.”