Exclusive: At-Bay common holders set for $0.25-a-share payout in sale to Munich Re

By Isha Marathe

Sept 15 (The Insurer) - Holders of common stock in cyber insurer At-Bay are expected to receive about $0.25 per share from its $575 million sale to Munich Re, while some preferred investors will receive as much as $3.75 per share, internal deal materials reviewed by The Insurer show.

The documents indicate holders of Series D and D-1 preferred stock will receive approximately $3.74 and $3.75 per share, respectively, compared with $1.13 for Series C and $0.55 for Series B.

The disparity reflects liquidation preferences attached to later funding rounds, which give those investors priority over common shareholders in the allocation of merger proceeds.

Series Seed, Series A-1 and Series A-2 shares are expected to participate in the remaining capital alongside common stock, receiving approximately $0.25 per share.

Munich Re announced on August 19 that it would acquire At-Bay at an enterprise value of $575 million. The cyber insurer will be overseen by Hartford Steam Boiler, part of Munich Re’s Global Specialty Insurance business.

At-Bay raised $185 million in July 2021 at a $1.35 billion post-money valuation, followed by a $20 million extension later that year at the same valuation.

Co-founder and CEO Rotem Iram told Israeli publication Calcalist on August 20: “All the investors made money in the deal. We take great care of our investors, and all the employees made money.”

“$300 million in new money came in beyond the money we raised. We built a real company with 280 employees, and we will become a full-fledged business unit. No one is leaving. The founders are also staying with the company,” he said.

At-Bay and Iram did not respond to requests for comment. Munich Re declined to comment.