Cybersecurity company Safe-T Group Ltd. SFET announced Wednesday that it reached an agreement to acquire NetNut Ltd., an Israeli company focused on business proxy network solutions.
What Happened
Safe-T said it will purchase the entire share capital of NetNut from its shareholders — and the assets required for NetNut's ongoing operations from its parent corporation — for a total of $9.7 million. The deal will be paid in a combination of equity and cash in an approximate 40-60 split.
Safe-T is entering an agreement with two institutional investors for a $6-million convertible loan that will be used to help finance the cash portion of the NetNut acquisition, according to the Wednesday press release.
Why It’s Important
NetNut has expertise in cloud services and offers exclusive, wholly owned global proxy network services based on a partnership model with internet service providers that are used by both cyber and web intelligence companies, according to Safe-T.
The company said NetNut complements its present services and could potentially introduce opportunities in new markets and industries while boosting Safe-T's revenue and cash flow.
What’s Next
The closing of the acquisition is subject to approval by Safe-T shareholders and other customary conditions.
Safe-T said further details of the detail will be provided in a notice to shareholders, and they will be convened for approval of the transaction.
Safe-T shares were trading up 10.31 percent to $2.89 at the time of publication Wednesday.
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