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TEL AVIV - HUB Cyber Security Ltd. (NASDAQ: HUBC), an Israeli-based cybersecurity firm with a market capitalization of $20.69 million, has completed the acquisition of BlackSwan Technologies, aiming to enhance its security and compliance offerings to the financial sector and governmental bodies worldwide. According to InvestingPro data, the company currently operates with significant financial challenges, including a weak gross profit margin of 8.47%. The merger is expected to strengthen HUB's position in the market for secured data fabric solutions, which is projected to reach $12.91 billion by 2032.
BlackSwan Technologies, known for its trusted solutions among large banks, fintech firms, and governments, will join HUB's efforts to meet increasing demands for cybersecurity in the face of stringent regulatory requirements. The collaboration between HUB and BlackSwan over the past six months has already led to new contracts in regulatory tech and other key areas.
HUB's CEO, Noah Hershcoviz, emphasized the significance of the acquisition, stating it as a pivotal milestone that will deliver substantial value, particularly to clients in the financial sector. HUB has invested over $50 million in BlackSwan's technologies, anticipating a significant rise in revenues and additional bookings of over $25 million in 2025 due to new customer acquisitions and operational synergies.
Established in 2017 by veterans of the Israeli Defense Forces' elite intelligence units, HUB specializes in advanced cybersecurity solutions, including encrypted computing technologies and data theft prevention. The company operates in over 30 countries, providing cybersecurity appliances and services to a diverse client base.
This press release contains forward-looking statements regarding the anticipated benefits of the acquisition, market opportunities, and projected revenues from the combined operations. However, these statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially. Investors should note that this article is based on a press release statement and should consider the risks detailed in HUB's public filings with the SEC.
The acquisition is a strategic move for HUB as it seeks to capitalize on the growing demand for robust security and compliance solutions across the globe.
In other recent news, HUB Cyber Security Ltd. has made significant strides in its financial restructuring and corporate governance. The cybersecurity firm has reduced its convertible note obligations by 70%, and secured an additional $1 million investment from a private investor. In a major move, HUB Cyber Security has also signed a definitive agreement for the acquisition of BlackSwan Technologies, a development expected to enhance the company's position in secured data fabric solutions.
In the face of financial challenges, HUB Cyber Security has embarked on strategic initiatives to improve liquidity. The company has restructured $7 million of its secured debt with United Mizrahi Tefahot (TASE:MZTF) Bank and is in advanced negotiations to refinance the remaining portion. Furthermore, HUB Cyber Security is contesting a delisting notice from the Nasdaq Stock Market due to non-compliance with the Nasdaq Global Market's minimum financial requirements.
The company has also appointed Ms. Renah Persofsky as an independent director, a move that is expected to significantly contribute to the company's growth and corporate governance. Amid these developments, HUB Cyber Security has secured multiple contracts and entered into an $8 million straight debt arrangement to support growth initiatives. These recent developments reflect the company's strategic decisions to navigate its financial challenges and improve its position for continued listing on the Nasdaq Global Market.
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