The stock market is in need of a sale or a swap to the company. Reuters - Zix Corp, a U.S. provider of email security solutions, said this weekend that despite the positive performance of the company, will be affected by the possibility of free trial.
Zix has hired Citigroup Inc. to negotiating with other parties that include interested companies and private equity firms, sources said.
There is no certainty any deal will be reached, added the sources who requested anonymity because the matter is confidential.
Dealmaking is heating up in the cyber security sector as more companies depend on remote working during COVID - 19 pandemic. In August, private equity firm Proofpoint Inc. took enterprise security platform Thoma Bravo Private for $12.3 billion.
The offerings of Zix have grown from compliance to security solutions and are used by 21,000 corporate and institutional customers, including 1,200 U.S. hospitals and 30% of U.S. banks, according to its website. The Dallas-based company has a market value of $436 million and had debt of $209 million at the end of June.
But its shares are down 11.2% year-to-date, amid investor concerns that it will be overtaken in the line by bigger rivals.