TEL AVIV - HUB Cyber Security Ltd (NASDAQ:HUBC), an Israeli firm specializing in confidential computing cybersecurity solutions, has announced the acquisition of QPoint Technologies, which expands its customer base and enhances its service offerings. The acquisition, completed for cash, now sees HUB holding full ownership of QPoint.
QPoint, founded in 2009, has a portfolio of over 100 top clients, including partnerships with high-profile organizations such as Rafael Advanced Defense Systems and the Israel Ministry of Defense. The company operates five subsidiaries, offering various services in data management and cybersecurity.
The integration of QPoint is expected to bolster HUB's capabilities in protecting sensitive information across various industries, including healthcare, government, energy, defense, and finance. QPoint brings to the table its expertise in software engineering, cybersecurity, and project management, among other areas.
Financially, QPoint has demonstrated solid performance with an annual revenue of approximately $26 million for the fiscal year 2023, and an impressive year-over-year customer growth rate of over 80%. This acquisition is seen as a significant step in strengthening HUB's market position and revenue stability.
Noah Hershcoviz, CEO of HUB, commented on the acquisition, stating that it represents a strategic enhancement of the company's cybersecurity infrastructure and a move towards increasing shareholder value.
The acquisition aligns with HUB's strategy to create a global secure data fabric ecosystem and is indicative of the company's commitment to growth and operational resilience.
This news is based on a press release statement from HUB Cyber Security Ltd. The company, established in 2017 by veterans of the Israeli Defense Forces' elite intelligence units, offers a range of cybersecurity solutions and operates in over 30 countries. The acquisition of QPoint is a continuation of HUB's strategy to fortify its cybersecurity offerings and expand its presence in the global market.
InvestingPro Insights
The recent acquisition of QPoint Technologies by HUB Cyber Security Ltd (NASDAQ:HUBC) marks a significant milestone in the company's expansion efforts. However, it's important for investors to consider the financial health and stock performance of HUBC in light of this development. According to InvestingPro data, HUBC's market capitalization stands at a modest 7 million USD, reflecting the company's size within the broader market landscape.
InvestingPro data also shows that HUBC has faced challenges with profitability, as evidenced by a negative P/E ratio of -0.09 for the last twelve months as of Q2 2023. This metric suggests that the company has not generated net income during this period. Additionally, the stock has experienced a significant downturn, with a one-year price total return of -94.59%, indicating a substantial decrease in its market value over the past year.
Despite these challenges, HUBC's acquisition of QPoint could provide a strategic advantage in the cybersecurity sector. Investors might be interested in the InvestingPro Tips, which include insights such as the stock being in oversold territory according to the RSI and trading at a low revenue valuation multiple. These tips suggest that the stock may be undervalued, providing a potential opportunity for investors looking at the long-term prospects of the company.
For a more comprehensive analysis and additional insights, investors can explore the 15 InvestingPro Tips available for HUBC at InvestingPro. To enhance your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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