Tel Aviv, Israel-based HUB Cyber Security has acquired QPoint Technologies, an IT services company that includes a cybersecurity division.
This is technology M&A deal number 87 that MSSP Alert and sister site ChannelE2E have covered so far in 2024. See more than 2,000 technology M&A deals for 2024, 2023, 2022, 2021, and 2020 listed here.
HUB Security, with its headcount listed at 589 employees, describes the acquisition as strategically aligned with its “mission to establish a leading global secure data fabric ecosystem.” Accordingly, QPoint, with 35 employees listed on LinkedIn, offers a diverse customer base of more than 100 leading brand clients, including partnerships with Rafael Advanced Defense Systems, the developer of Israel’s “Iron Dome” air defense system, the Israel Airport Authority, and the Ministry of Defense of Israel.
Established in 2009, QPoint comprises five subsidiaries and provides solutions and consulting across various verticals, including data management and security solutions, according to HUB. As such, the “strategic integration enhances HUB's capabilities in safeguarding sensitive information across various sectors.”
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, HUB said.
Adding to the value of the all-cash acquisition, HUB noted that QPoint has “exhibited robust financial health,” with an annual revenue in fiscal year 2023 of about $26 million. In addition, QPoint has posted a year-over-year customer growth rate surpassing 80%, HUB said.
HUB CEO Noah Hershcoviz described the acquisition as deeply embedded in HUB’s 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,” he said. “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."
About HUB Cyber Security
HUB Cyber Security was established in 2017 by veterans of the elite intelligence units of the Israeli Defense Forces, and today operates in over 30 countries. The company specializes in cybersecurity solutions protecting sensitive commercial and government information. Hub debuted an advanced encrypted computing solution to prevent hostile intrusions at the hardware level while introducing a novel set of data theft prevention solutions.
In May 2023, entered into an agreement to receive up to $16 million in gross proceeds from Lind Global Asset Management. This investment provided Hub with additional resources to fuel its rapid growth and development.
