In consideration of around $9.7 million, Safe-T will purchase NetNut’s assets for ongoing operations and its entire share capital.
Israeli cybersecurity software company Safe-T Group Ltd. has entered into an agreement to acquire business proxy network solutions provider NetNut Ltd., which is also based in Israel. It is considering to pay approximately $9.7 million in the form of equity and cash to NetNut as part of the agreement. The assets needed for NetNut’s current operations will be bought from the company’s parent organization. Safe-T will also buy all of the company’s share capital from its stockholders. Next year, it may pay an additional earn-out amount as part of the consideration. If the payment is finalized, it will be subject to the level of revenue increase experienced by NetNut during this year compared to the last year.
The deal between Safe-T and NetNut is waiting to receive approval from Safe-T’s stockholders and subject to customary closing conditions. Safe-T also made an announcement about its other agreements with a couple of American institutional investors. The agreements are for an aggregate convertible loan of an estimated $6 million. Safe-T will use the money to arrange for the cash portion of the acquisition deal with NetNut.
Safe-T to offer cloud-based software-defined access service to customers
Last year, NetNut earned revenues worth $2.2 million, which was a telling rise from 2017’s $0.8 million, as per the unaudited financial data provided to Safe-T. It has efficient operational expenses management and no long-term liabilities, or debts. It offers wholly-owned, exclusive global proxy network services and expertise in the fast-growing cloud services market. The services it offers are based on exceptional technology and model partnership with internet service providers across the globe. They are used by web as well as cyber intelligence businesses.
NetNut carries the potential to create opportunities in new industries and markets while improving cash flow and revenue. More importantly, it complements Safe-T’s existing services. Its independent cloud-based service located globally will be combined with Safe-T’s software-defined perimeter technology, according to sources. This will help Safe-T to offer a cloud-based software-defined access service to its customers. The company will also enable its customers to further improve the control and security of all outgoing web browsing and incoming access to internal services.