HUB Cyber Security Acquires QPoint Technologies, Advancing its Plans for a Secured Data Fabric Ecosystem
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The acquisition of QPoint by HUB Cyber Security Ltd represents a strategic move that could potentially bolster the company's financial performance. The addition of over 100 top customers from diverse sectors provides an immediate expansion of HUB's revenue base. This diversification is beneficial as it reduces reliance on a single market segment, potentially stabilizing cash flows and providing a hedge against sector-specific downturns.
Furthermore, the mention of QPoint's robust financial health and significant annual revenue suggests a positive impact on HUB's balance sheet. Investors should note that the acquisition was completed for cash, which might impact HUB's liquidity in the short term but could be offset by the incoming revenue streams. A critical aspect to monitor would be the efficiency of the integration process and how quickly HUB can leverage QPoint's client relationships for cross-selling opportunities.
The cybersecurity landscape is rapidly evolving and HUB's acquisition of QPoint is a clear effort to stay ahead of the curve by enhancing their secure data fabric ecosystem. QPoint's expertise in software engineering and cybersecurity, particularly their work with high-profile clients like Rafael Advanced Defense Systems, positions HUB to offer more comprehensive solutions to a broader market.
This move could also be seen as a proactive response to the growing demand for cybersecurity in critical sectors such as healthcare and defense. By integrating QPoint's capabilities, HUB is likely to enhance its competitive edge in the market, which is essential for maintaining and growing market share in the cybersecurity industry.
The strategic acquisition of QPoint by HUB Cyber Security Ltd could signal a shift in the competitive dynamics of the cybersecurity industry. HUB's enhanced product offerings and expanded market reach are likely to exert pressure on competitors, potentially leading to market consolidation or triggering a response in the form of innovation or alliances within the sector.
For stakeholders, the key takeaway is the potential for increased market share and the strengthening of HUB's position as a leader in the secure data fabric ecosystem. The long-term success of this acquisition will hinge on HUB's ability to integrate QPoint's technology and expertise seamlessly and to realize the cross-selling potential that has been highlighted.
The acquisition adds 100+ top customers, and will significantly enhance HUB’s growth
TEL AVIV, Israel, April 04, 2024 (GLOBE NEWSWIRE) -- via IBN -- HUB Cyber Security Ltd (Nasdaq: HUBC), a developer of confidential computing cybersecurity solutions and services ("HUB" or the "Company"), is pleased to announce the successful acquisition for cash of Qpoint Technologies (“Qpoint”). Following this acquisition HUB holds
Established in 2009, QPoint comprises five subsidiaries and provides solutions and consulting across various verticals, including innovative data management and security solutions. The strategic integration enhances HUB's capabilities in safeguarding sensitive information across various sectors. QPoint has expertise in software engineering, testing, cybersecurity, ICT, web, mobile, project management, and complex integration processes, bringing invaluable additions to HUB portfolio and expanding market reach, revenue stability and customer support. There is a significant cross-selling opportunity between QPoint and HUB's expanded offerings, with customers spanning the healthcare, government, energy, defense, and financial sectors.
Enhancing the value of this acquisition further, QPoint has exhibited robust financial health, boasting an annual revenue in FY23 of about
Noah Hershcoviz, CEO of HUB, declared, "Acquiring QPoint is not just a transaction; it's a strategic move deeply embedded in our long-term vision. Completing the acquisition of QPoint now is part of our strategy aimed at fortifying our cybersecurity infrastructure, enhancing our operational resilience, and ultimately increasing shareholder value. This integration marks a pivotal moment in our journey towards establishing a more comprehensive cybersecurity framework and underscores our commitment to our mission and to our shareholders."
For further information or inquiries, please contact info@hubsecurity.com
About HUB Cyber Security Ltd.
HUB Cyber Security Ltd ("HUB Security") was established in 2017 by veterans of the elite intelligence units of the Israeli Defense Forces. The Company specializes in unique cyber security solutions protecting sensitive commercial and government information. The company debuted an advanced encrypted computing solution to prevent hostile intrusions at the hardware level while introducing a novel set of data theft prevention solutions. HUB Security operates in over 30 countries and provides innovative
cybersecurity computing appliances and a wide range of cybersecurity services worldwide.
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995, including statements about the anticipated benefits of the transaction, and the financial condition, results of operations, earnings outlook and prospects of the combined company. Forward-looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "future," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "seem," "should," "will," "would" and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements are based on the current expectations of the management of HUB Security, as applicable, and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made with the SEC by the HUB Security and the following: (i) significant uncertainty regarding the adequacy of HUB Security’s liquidity and capital resources and its ability to repay its obligations as they become due; (ii) the war between Israel and Hamas commenced in October 2023 and the potential expansion of hostilities to other fronts may harm Israel’s economy and HUB Security’s business; (iii) expectations regarding HUB Security's strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and HUB Security's ability to invest in growth initiatives and pursue acquisition opportunities; (iv) the outcome of any legal or regulatory proceedings against HUB Security in connection with our previously announced internal investigation or otherwise; (v) the ability to cure and meet stock exchange continued listing standards; (vi) the risk that the consummation of the business combination in February 2023 will disrupt HUB Security's operations and future plans; (vii) competition, the ability of HUB Security to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (viii) limited liquidity and trading of HUB Security’s securities; (ix) geopolitical risk, including military action and related sanctions,
and changes in applicable laws or regulations; (x) the possibility that HUB Security may be adversely affected by other economic, business, and/or competitive factors; (xi) other risks and uncertainties set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in HUB Security’s Annual Report on Form 20-F filed on August 15, 2023.
Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of HUB Security prove incorrect, actual results may vary in material respects from those expressed or implied in these forward-looking statements.
All subsequent written and oral forward-looking statements concerning the business combination or other matters addressed in this press release and attributable to HUB Cyber Security or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in the press release. Except to the extent required by applicable law or regulation, HUB Security undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release to reflect the occurrence of unanticipated events.
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