Israel's HUB Cyber Security said on Wednesday it would go public in the United States by merging with a blank-check firm in a deal valued at nearly $1.3 billion.

The deal with Mount Rainier Acquisition Corp is expected to have cash proceeds of around $176 million from the special purpose acquisition company's (SPAC) trust, assuming there are no redemptions.

The combined company will also receive about $50 million from a private investment in public equity anchored by Israeli and American institutional investors as well as existing shareholders.

HUB Cyber Security was founded in 2017 by former members of intelligence units of the Israeli Defense Forces. It operates in more than 30 countries and provides cybersecurity services and computing hardware to enterprises and governments.

The combined company will be named HUB Security and trade on the Nasdaq under the ticker symbol "HUBC". The deal is expected to close in the third quarter of this year.

(Reporting by Sohini Podder in Bengaluru; Editing by Vinay Dwivedi and Aditya Soni)