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TEL AVIV - HUB Cyber Security Ltd. (NASDAQ:HUBC), a cybersecurity firm with a market capitalization of $20.7 million, has signed a perpetual Know Your Customer (KYC) and compliance services agreement with crypto ecosystem Kyrrex and an unnamed crypto merchant vendor, according to a press release statement.
The agreement, which begins July 1, 2025, is expected to generate approximately $25 million in recurring annual revenue for HUB, a significant boost considering the company’s current revenue decline of 30.7% over the last twelve months. The company will provide its Perpetual KYC solution to monitor and verify between 1.2 million and 1.5 million customer entities. InvestingPro analysis reveals concerning financial metrics, including weak financial health and rapid cash burn.
The deal comes as Kyrrex and the crypto merchant vendor are planning a merger. HUB’s services will include regulatory readiness assessments during pre-merger due diligence and implementation of a unified KYC system to capture cost synergies.
Kyrrex, based in Malta, holds a Class 4 Virtual Financial Assets license and is working toward compliance with Markets in Crypto-Assets (MiCA) regulations. The company is also pursuing Electronic Money Institution and MiFID authorizations.
The crypto merchant partner operates a payment gateway supporting merchants in over 190 countries, according to the announcement.
Noah Hershcoviz, CEO of HUB, called the agreement a "high-margin recurring revenue stream" that supports the company’s "long-term growth and profitability objectives."
HUB Cyber Security, founded in 2017 by veterans of Israeli Defense Forces intelligence units, provides secured data infrastructure and compliance technology services to financial institutions, governments, and regulated enterprises.
In other recent news, HUB Cyber Security Ltd. announced significant developments, including the appointment of Paul Parisi as Global Chief Revenue Officer. Parisi, formerly of PayPal Canada, will lead HUB’s global revenue strategy, focusing on North America. The company also regained full compliance with Nasdaq listing requirements following a strategic restructuring. This achievement was confirmed by Nasdaq, noting HUB met the necessary bid price and market value thresholds. HUB Cyber Security further secured contracts worth over $1.5 million in the first quarter of 2025, enhancing its presence in sectors with high data protection needs. Additionally, Shlomo Bibas joined HUB’s Board of Directors as an Independent Member, bringing over two decades of experience in technology and cybersecurity. The company also appointed John Rogers as President of the Americas Region, a strategic move to bolster its presence in North America. These developments align with HUB’s ongoing expansion efforts and its commitment to delivering advanced cybersecurity solutions globally.
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