HUB Cyber Security Ltd. has announced the acquisition of BlackSwan Technologies, Inc., which aims to enhance data fabric solutions for banks and financial institutions. This transaction is pending customary closing conditions and is projected to finalize next week.

The merger reinforces HUB’s position in secured data fabric technology, crucial for organizations grappling with complex regulatory and cybersecurity demands. BlackSwan brings a portfolio of existing contracts with major banking institutions, expected to be supported by HUB’s established delivery platform.

BlackSwan’s advanced AI-powered technology is noted to cut the total cost of complex financial systems by 50%, all while maintaining compliance with stringent global regulations. The integration of these capabilities positions HUB to address the pressing needs for data security across industries such as banking, healthcare, and insurance.

Noah Hershcoviz, CEO of HUB Cyber Security, expressed confidence that the acquisition will solidify the company’s leadership in secured data management, stating, “BlackSwan's groundbreaking technologies will enable us to deliver unmatched value to our clients, particularly in the financial sector, where the stakes for security and compliance have never been higher.”

Ranan Grobman, Director at BlackSwan, added that the collaboration would enhance their ability to deliver critical security and compliance tools across various industries. This acquisition is anticipated to create significant market opportunities, valued at over $500 million, driven by increasing customer demands and stricter regulations.

The deal is structured as a stock-for-stock acquisition, allowing BlackSwan's shareholders to own approximately 31% of the combined entity on a fully diluted basis.