Dec 20 (Reuters) - Cybersecurity company ZeroFox said on Monday it will buy digital privacy protection platform IDX and go public through a merger with blank-check firm L&F Acquisition Corp (LNFA.N), in a deal that values the combined entity at $1.4 billion. With the pandemic having forced businesses to shift to a hybrid working model, demand for protection against digital threats has boomed, benefiting companies in the cybersecurity sector. Companies like SentinelOne Inc (S.N) have taken advantage of this surge in demand to list their shares, while Arctic Wolf, another cybersecurity startup, is also seeking to go public, Reuters reported last month. read more Merger activity in the special purpose acquisition company (SPAC) market is also ticking back up after a lean run earlier this year due to tightening grip from the U.S. Securities and Exchange Commission. Under the ZeroFox merger deal, Monarch Alternative Capital, Victory Park Capital and others will invest $170 million as part of the financing. Baltimore, Maryland-based ZeroFox is a business software company that provides customers with threat intelligence to disrupt phishing, impersonations and other malicious activities. Its customers include Intel Corp (INTC.O) and Microsoft Corp (MSFT.O), according to its website. SPACs are listed firms with no business operations other than seeking a private company to merge with.