Hubify enters security space with a strategic stake in defence-grade cyber play Internet 2.0
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Hubify’s expansion plan has gained further ground today, with the announcement of a stake in defence-grade cyber company, Internet 2.0.
Telecommunications services provider Hubify (ASX:HFY) has just announced a strategic stake in Australian and US-based defence-grade cyber company, Internet 2.0.
The agreement will enable Hubify to diversify its revenue base, by providing defence-grade cyber security solutions to its 7,000 SME customers as part of its cyber security offering to be known as CyberHub.
Today’s three-year deal saw Hubify investing $500k in Internet 2.0 for a 4.2 per cent stake. There is also an option to acquire a further $1 million in Internet 2.0’s shares at the same price, subject to revenue targets.
Internet 2.0 provides defence-grade cyber security solutions to small and medium-sized businesses and enterprises, that are increasingly connecting remotely to the cloud and across information domains.
Its proprietary technology includes an obfuscation technology that hides the customer’s network from cyber predators.
Traditionally, a hacker needs to know the IP address before they can conduct a cyber attack upon a device through a network. By obscuring the network from these scanners, such as NMAP, Internet 2.0 is able to dislocate most hackers from their most critical capabilities.
The Obfuscation 2.0 technology, as it is called, was developed in Australia, and according to the company, will provide SMEs with cyber security across the entire surface area of an enterprise, inside and out.
The support and monitoring system for the software will be done in-house by a team of Internet 2.0’s experts made up of former government and intelligence cyber experts.
Hubify is confident that the inclusion of Internet 2.0 into its business will increase its revenue mix.
“With our existing customer base and 40 strong sales team already delivering good organic growth in our core products, we are very confident in adding incremental sales to our base,” Hubify CEO, Victor Tsaccounis, said.
Today’s acquisition is the latest in a series of recent deals Hubify has signed to expand the business.
In February, the company acquired the assets of Queensland-based telecommunications provider, Nethoster, for $800k in cash. That acquisition is expected to add $400k to Hubify’s EBITDA, as well as $1 million in annualised recurring revenue to its existing earnings base.
And just two weeks ago, Hubify’s subsidiary’s Broadland Solutions entered into a new five-year extension deal with telecom giant, Optus. Broadland has been supplying Optus with mobility solutions since 2015, and the extended deal is worth an estimated revenue of $40 million up to 2026, based on the current run rate.
Tsaccounis said the agreements signed are all strategic, and are part of the company’s expansion plans.
“This (Internet 2.0) investment and partnership supports our dual pronged strategy to grow organically, and through acquisitions in telco and managed services,” he said.
Hubify’s share price has risen by more than 160 per cent in the last 12 months.
This article was developed in collaboration with Hubify, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.