The acquired business generated revenues of approximately $4.2 million in 2020
HERZLIYA, Israel, July 1, 2021 (GLOBE NEWSWIRE) — Safe-T® Group Ltd. (Nasdaq, TASE: SFET) (the “Company”), a provider of secure access solutions and intelligent data collection, today announced the acquisition of CyberKick Ltd. (“CyberKick”). The closing of the transaction is expected next week, subject to certain customary closing conditions, including the delivery of all required documents and approvals, and its cash consideration will be funded with internal cash resources.
CyberKick is a provider of Software-as-a-Service (SaaS) security and privacy tools, designed to reduce users’ vulnerability to threats while making them more resilient in their online activity, to prevent and defend against a wide spectrum of cyber threats as well as to provide users with control of their accounts and management of access to sensitive data. The acquisition will complement Safe-T’s secure access portfolio for organizations with the addition of solutions against known and unknown threats and expand its footprint in the private users’ cybersecurity market.
According to unaudited results provided to Safe-T, the acquired business generated revenues of approximately $4.2 million in 2020 and was profitable.
Shachar Daniel, Chief Executive Officer of Safe-T, commented: “The acquisition of CyberKick and the addition of its talented entrepreneurs to Safe-T’s leadership is another important milestone towards accomplishing our mission to provide unique competitive cybersecurity solutions and to have a significant footprint in the cybersecurity consumer market. We believe the new platform will enrich our innovative technology offering and will support our overall growth, alongside the contribution to our revenue stream.”
Mr. Daniel added: “Following our two previous acquisitions of NetNut Ltd. and Chi Cooked LLC, we are confident in our ability to successfully integrate the new business and to maximize its potential for all the solutions offered by Safe-T. As we invest in the adjustment and migration of some of our technologies and solutions onto the consumer market, the new acquisition, with its well-established online infrastructure and the expertise of its team will provide us with additional ways to reach customers. This is a key pillar in Safe-T’s strategic roadmap to become a leading company in the security and privacy markets, expanding our presence and approaching new segments of clients and customers worldwide. We believe that CyberKick’s talented team will help us to steer the company to fulfill its potential. Cybersecurity Ventures predicts there will be 6 billion internet users by 2022 (75% of the projected world population of 8 billion) — and more than 7.5 billion internet users by 2030 (90% of the projected world population of 8.5 billion, 6 years of age and older). Cybercrime has hit the U.S. so hard that a supervisory special agent with the FBI who investigates cyber intrusions told The Wall Street Journal that every American citizen should expect that all of their data (personally identifiable information) has been stolen and is on the dark web2. This is a key pillar in Safe-T’s strategic roadmap to become a leading company in the security and fast-growing privacy markets (growth rate of ~20% YOY till 2027, growing from 30B$ to 120B$), expanding our presence and approaching new segments of clients and customers worldwide. We believe that CyberKick’s talented team will help us to steer the company to fulfill its potential.”
The initial consideration paid on the closing of the transaction, for the sale and purchase of 100% of the equity interest in CyberKick, was a combination of cash ($3.7 million) and equity ($5.6 million, representing approximately 163 million of Safe-T’s ordinary shares – approximately 13.5% of the outstanding share capital post-acquisition). The consideration may be increased by an additional earn-out payment of up to $3 million in total, subject to certain revenue targets of CyberKick during the first and second year following the closing of the transaction. Safe-T may decide, at its sole discretion, to pay the earn-out consideration in whole or in part in equity. Safe-T committed to support and boost CyberKick’s growth by providing financing of $2.5 million in the 24 months following the acquisition. Dawson James Securities, Inc. acted as financial advisor to the Company and provided a fairness opinion to the Company’s board of directors in connection with the acquisition.
CyberKick’s privacy solution, which was recently launched and in a short time, already purchased by thousands of end-users, allows users to manage their online privacy with a powerful, secure and encrypted connection, providing safer online browsing and keeping them safe from hackers when using unsecured Wi-Fi networks.
CyberKicks’s security solution, iShield, is a protective cybersecurity tool that identifies, eliminates, and helps avoid security and data threats that occur unknowingly to many users while they are browsing online. The solution provides powerful comprehensive protection from online cyber-attacks such as phishing, malware, ransomware, identity theft, data scams, and viruses, all on the internet gateway access level. By identifying the risks and blocking the gateway in advance, the solution is protecting users before any damage is done.
The commercial-grade version will be launched in the coming months.
About Version 2 Limited
Version 2 Limited is one of the most dynamic IT companies in Asia. The company develops and distributes IT products for Internet and IP-based networks, including communication systems, Internet software, security, network, and media products. Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 Limited offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.
About Safe-T® Group Ltd.
Safe-T Group Ltd. (Nasdaq, TASE: SFET) is a provider of Zero Trust Access solutions which mitigate attacks on enterprises’ business-critical services and sensitive data, while ensuring uninterrupted business continuity. Safe-T’s cloud and on-premises solutions ensure that an organization’s access use cases, whether into the organization or from the organization out to the internet, are secured according to the “validate first, access later” philosophy of Zero Trust. This means that no one is trusted by default from inside or outside the network, and verification is required from everyone trying to gain access to resources on the network or in the cloud.
Safe-T’s wide range of access solutions reduce organizations’ attack surface and improve their ability to defend against modern cyberthreats. As an additional layer of security, our integrated business-grade global proxy solution cloud service enables smooth and efficient traffic flow, interruption-free service, unlimited concurrent connections, instant scaling and simple integration with our services.
With Safe-T’s patented reverse-access technology and proprietary routing technology, organizations of all size and type can secure their data, services and networks against internal and external threats.
The last few years have seen an alarming spike in the number of malicious hackers, from individuals acting on their own, to well-oiled private and governmental groups. But they all share the same modus operandi: lurking, waiting for unsuspecting users to make even the smallest mistake online.
CyberKick was built to fight that battle: to make the internet a safer place for everyone.
CyberKick has a talented and ambitious team of developers, that together with experienced product enthusiasts, work in harmony to make its mission a reality.