Cybereason, a SoftBank-backed cybersecurity company, is reportedly preparing to file confidential paperwork for an initial public offering (IPO).

• According to Reuters, Cybereason has confidentially filed paperwork with U.S. regulators for an initial public offering (IPO).
• Endpoint protection has become a rapidly expanding market, and the company has emerged as one of its leading players.
• Nearly $750 million has been raised by Cybereason up to now, and its most recent valuation is $2.7 billion, as per PitchBook data.

Cybereason, a security software vendor backed by Google's cloud unit, has confidentially filed for a U.S. stock market listing at a reported $5 billion valuation, according to Reuters.

Last year, the company was placed 32nd on the CNBC Disruptor 50 list.

Lior Div, co-founder and CEO of Cybereason, established the company in Israel in 2012 and later relocated it to Boston. The company has since become a leading player in the rapidly expanding market of endpoint protection, which entails safeguarding large corporate and government networks and their numerous devices from the sophisticated hacking methods and techniques that are increasingly being utilized worldwide.

Recent years have seen the company's technology uncover schemes, including one where a perpetrator stole large amounts of personal and corporate data from over a dozen global telecommunications companies. Cybereason discovered links between this attack and previous Chinese cyber espionage campaigns.

In May, Cybereason CEO Lior Div returned to Israel for the first time since the pandemic to visit his 300 employees based there. A few days into his stay, news broke that Colonial Pipeline, the largest U.S. pipeline operator, had been crippled by a cyberattack that shut down a 5,500-mile fuel network. The Colonial Pipeline attack was of great concern because the group responsible, an organization known as DarkSide, had attempted to infiltrate one of Cybereason's clients nine months earlier.

Cybereason researchers discovered that DarkSide is a group of extortionists who steal private data and threaten to release it unless the victim pays a large sum of money, typically between $200,000 and $2 million. In response, the company published a blog post detailing their findings at the beginning of April.

Liberty Strategic Capital, the investment firm of former Treasury Secretary Steven Mnuchin, is one of the notable investors in Cybereason, which has raised nearly $750 million and is valued at $2.7 billion, according to PitchBook data.

A Cybereason spokesperson didn’t immediately respond to a request for comment.

—CNBC’s Ari Levy contributed to this report.