Tel Aviv, Israel-based HUB Cyber Security has acquired QPoint Technologies, an IT services company that includes its cybersecurity division.
This is technology M&A deal number 87 that MSSP Alert and sister site ChannelE2E have covered so far in 2024. Listed here are his 2,000+ technology M&A deals from 2024, 2023, 2022, 2021, and 2020.
HUB Security, which lists 589 employees, describes the acquisition as strategically aligned with its “mission to establish the world's leading secure data fabric ecosystem.” Therefore, QPoint, which is listed on LinkedIn and has 35 employees, is the developer of Israel's “Iron Dome” air defense system, Rafael Advanced, his Defense Systems, the Israel Airports Authority, and the Israeli Ministry of Defense.
According to HUB, QPoint was founded in 2009 and consists of five subsidiaries, providing solutions and consulting across a variety of areas, including data management and security solutions. As such, “strategic integration will enhance his HUB's ability to protect sensitive information across a variety of areas.”
HUB says there are significant cross-selling opportunities between QPoint and HUB's expanded services, with customers spanning the healthcare, government, energy, defense and financial sectors.
In addition to the value of the all-cash acquisition, HUB noted that QPoint “demonstrates strong financial health,” with annual sales of approximately $26 million in fiscal 2023. Additionally, QPoint recorded a customer growth rate of over 80% year-on-year, he said HUB.
HUB CEO Noah Hershkovis said the acquisition is deeply integrated into HUB's long-term vision.
“Completing the acquisition of QPoint now is part of our strategy to strengthen our cybersecurity infrastructure, strengthen the resilience of our business and ultimately increase shareholder value.” said. “This integration is a pivotal moment in our efforts to establish a more comprehensive cybersecurity framework and underscores our mission and our commitment to our shareholders.”
About HUB Cyber Security
HUB Cyber Security was founded in 2017 by veterans of the Israel Defense Forces' elite intelligence units and currently operates in more than 30 countries. The company specializes in cybersecurity solutions that protect sensitive commercial and government information. Hub debuts an advanced encrypted computing solution that prevents hostile intrusions at the hardware level, while introducing a new set of data theft prevention solutions.
In May 2023, the Company entered into an agreement to receive up to $16 million in gross proceeds from Lind Global Asset Management. This investment provides the hub with additional resources to foster rapid growth and development.
