Safe-T®, a leading provider of software-defined access solutions for the hybrid cloud, announced today that it has signed a non-binding letter of intent (LOI) for the acquisition of a fast-growing Israeli company in the business proxy network solution industry. The purchased company offers extensive experience in cloud services, operating a unique, wholly-owned global proxy network technology used by web intelligence and cyber companies.

The purpose of the acquisition is to combine Safe-T's Software Defined Perimeter (SDP) offering with the purchased company's globally-located independent cloud-based service, providing Safe-T's customers with a cloud-based Software Defined Access service for the first time. The joint service will control all incoming access to internal services and outgoing web browsing, allowing Safe-T's customers to completely hide their location from the outside world. The purchased company is synergetic to Safe-T's operations and could contribute in penetrating new markets and reaching additional customers in various industry segments. The proposed acquisition, if closed, is expected to significantly increase Safe-T's revenue and may contribute to its cash flow. 

Under the terms of the LOI, Safe-T will purchase all of the company's issued and outstanding shares. The expected payment for the transaction is $9.7 million, which will be paid in a combination of equity and cash. The consideration may include an additional earn-out payment in 2020, subject to the level of increase of the purchased company's sales during 2019 compared to 2018. 

Pursuant to the LOI, the parties will enter into definitive agreements within 40 days, and the closing will take place no later than 45 days thereafter, subject to closing conditions. There is no assurance that definitive agreements will ever be entered into and that the transaction will ever be closed.