Safe-T reveals acquisition of SaaS security and privacy solutions provider CyberKick

Safe-T Group Ltd (NASDAQ:SFET), a provider of secure access solutions and intelligent data collection, has announced the acquisition of CyberKick Limited, which was built to make the Internet a safer place through a cash-and-stock deal. 

The company said the closing of the transaction is expected next week, subject to customary closing conditions, including the delivery of all required documents and approvals. Its cash consideration will be funded with internal cash resources. 

The company said that the initial consideration paid on the transaction closing for 100% of the equity interest in CyberKick, will include $3.7 million in cash and $5.6 million in equity, representing around 163 million of Safe-T’s ordinary shares, which is around 13.5% of the outstanding share capital post-acquisition.

READ: Safe-T Group subsidiary signs partnership deal to bring its zero-trust network access solution to the Swiss market

This may increase by an additional earn-out payment of up to $3 million, subject to CyberKick meeting certain revenue targets during the first and second year after the closing of the transaction, said the company.

Safe-T may decide, at its sole discretion, to pay the earn-out consideration in whole or in part in equity. “Safe-T is committed to support and boost CyberKick’s growth by providing financing of $2.5 million in the 24 months following the acquisition,” said the company.

Dawson James Securities acted as the financial advisor to the company and provided a fairness opinion to the board relating to the acquisition.

CyberKick provides Software-as-a-Service (SaaS) security and privacy tools to counter threats, while keeping users safer when they are online. It defends against a spectrum of cyber threats and provides users with control over their accounts and sensitive data.

According to unaudited results provided to Safe-T, the acquired business generated revenues of around $4.2 million in 2020 and was profitable.

In a statement, Safe-T CEO Shachar Daniel said: “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 cyber-security 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.”

The Safe-T boss noted that following the firm’s two previous acquisitions of NetNut Ltd. and Chi Cooked LLC, the company is confident in its ability to “successfully integrate the new business” and to maximize its potential.

“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,” said Daniel.

Cybersecurity Ventures forecasts that there will be 6 billion internet users by 2022, which is 75% of the projected world population of 8 billion — and more than 7.5 billion internet users by 2030, which is 90% of the projected world population of 8.5 billion, counting everyone six years of age and older.

“Cybercrime has hit the US 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 web,” said Daniel. “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 around 20% YOY till 2027, growing from 30B$ to 120B$).”

CyberKick’s privacy solution 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.

CyberKick’s iShield is a protective cybersecurity tool that eliminates security and data threats that occur unknowingly when people are browsing. It provides protection from 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 protects users before any damage is done.

The commercial-grade version will be launched in the coming months.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Story by ProactiveInvestors