HUB Cyber Security agrees $8.7m sale of QPoint to Malam Team
HUB Cyber Security (Nasdaq: HUBC) has signed an agreement to sell its QPoint Group subsidiary to Israeli IT services company Malam Team for approximately US $8.7 million. The Tel Aviv-listed acquirer will take 100% of QPoint's issued share capital on a cash-free, debt-free basis, with proceeds earmarked primarily for creditor repayment.
The deal is structured around a performance-based formula: the total consideration equates to twice QPoint's agreed gross profit for the 2025 financial year, arriving at the $8.7 million figure. A portion of the consideration will be held in escrow by a third-party trustee to cover indemnification obligations, and closing remains contingent on merger clearance from the Israel Competition Authority alongside other customary approvals.
The divestiture
QPoint Group comprises five operating entities: QPoint Technologies Ltd., Aginix Engineering Ltd., QPoint Solutions Ltd., Sensecom Ltd., and Integral Telemanagement Ltd. The group appears to be a technology services and engineering business with a telemanagement component, distinct from HUB's core confidential computing and cybersecurity software activities.
Board chairperson Renah Persofsky described the transaction as "an important milestone in our commitment to stabilising HUB's financial foundation," adding that the proceeds would be used to "satisfy our creditor obligations" and allow the company to streamline its operational footprint.
Market context
HUB Cyber Security is in the midst of a comprehensive restructuring, having previously pivoted around a confidential computing and AI-driven data fabric proposition. The company's annual report, filed with the SEC in July 2026, acknowledged significant uncertainty over its liquidity and capital resources, including the ability to repay obligations as they fall due. A risk of non-compliance with Nasdaq continued-listing standards was also flagged.
Divestitures of non-core subsidiaries to shore up balance sheets are a recurring pattern among mid-tier cybersecurity vendors that expanded rapidly through acquisition during the 2020 to 2022 growth cycle and have since faced tighter credit conditions and slower enterprise spending. HUB's situation follows a script seen at several Israeli cyber firms that listed in the US during that period via SPAC or direct listings, then encountered revenue shortfalls and balance sheet pressure as investor appetite cooled.
The Malam Team Group is an established Israeli IT services and systems integration business, giving it an operational rationale for absorbing a technology services unit like QPoint. The acquisition price, calculated on a gross profit multiple rather than revenue, suggests limited growth premium was attached to the business.
Restructuring outlook
HUB said its board continues to explore strategic alternatives intended to maximise shareholder value. The company has not disclosed what, if anything, remains of its core product portfolio after the divestiture, nor provided a revenue or headcount figure for the retained business.
For investors, the key near-term signals will be whether the QPoint proceeds are sufficient to satisfy the secured creditors, whether further asset sales follow, and whether HUB can demonstrate a credible standalone revenue base without QPoint. Until those questions are answered, the restructuring carries material execution risk.