HUB Cyber Security Stock Skyrockets On Acquisition Of BlackSwan Technologies In All-Stock Deal: Retail Remains Neutral

HUB estimates the combined market opportunity at $500 million and expects it to grow in 2025 and 2026.

Shares of HUB Cyber Security Inc. (HUBC) surged nearly 5% in morning trade on Thursday after the company announced the acquisition of BlackSwan Technologies in an all-stock transaction.

The acquisition is expected to close next week, subject to regulatory approvals. After the transaction, BlackSwan shareholders will own 31% of the combined entity.

“The acquisition of BlackSwan Technologies represents a pivotal milestone in HUB’s strategy to deliver cutting-edge solutions tailored to industries where security and compliance are paramount,” HUB said.

The Israel-based IT services company said over $50 million has already been invested in developing BlackSwan’s solutions. HUB estimates the combined market opportunity at $500 million and expects it to grow in 2025 and 2026.

“HUB and BlackSwan have been collaborating for the past six months and have been working together to close new contracts in regulatory tech and other critical use cases,” the company added.

Retail sentiment on Stocktwits remained in the ‘neutral’ (46/100) zone, while the message volume surged to ‘high’ (61/100) levels on Thursday.

Meanwhile, one user opined the bulls long on the HUB stock should continue to hang onto it.

However, not everyone is sold on the bullish outlook.

HUB’s share price has declined by nearly 7% over the past six months, while it has fallen by over 60% in the past year.

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