Relay Acquires IoT Cybersecurity Firm Cybeats Technologies Fortifying Critical Pandemic Device Deployments - Seite 2

On close of the transaction Relay will acquire Cybeats’ technologies, intellectual property and trade secrets, and Cybeats will become a wholly owned subsidiary of Relay. In conjunction with the transaction, Cybeats co-founder and CEO, Dmitry Raidman, will be appointed CTO of Cybeats.

"We are at a major inflection point of the IoT security market both with respect to the attention it is receiving following the recent events in 2020 and with respect to regulations and standards that have been proposed in North America and Europe. Device OEM companies are motivated to follow and comply with these standards and this requires a different scale and approach. Integrating Cybeats unique award-winning device security technology will help OEMs to support the required scale and achieve their goals. It is imperative for Cybeats to grow fast and increase the business footprint in the OEM device security market around the globe, and this acquisition will accelerate that process," said Dmitry Raidman, CEO, Cybeats Technologies Inc.

The Cybeats platform helps companies build their devices with visibility into their security gaps and software supply chain. The platform then continuously monitors the devices for new emerging threats. When devices are operational in the hands of end-users, Cybeats provides controls to detect and eliminate cyber-attack threats in real-time with advanced incident response technology and integrates with modern SIEM (Security Information and Event Management) solutions. Cybeats uniquely provides built-in security as compared to today’s market standard of bolt-on security.

The Cybeats technology has been developed with the future of IoT and the security of connected smart devices in mind. Future regulations and standards for devices are expected to require the active solutions such as those Cybeats provides. The Cybeats team are thought leaders with extensive experience in the cybersecurity industry, and with more than 15 years of pioneering work in both cloud systems and embedded software.

Transaction Highlights

In accordance with the terms of the Share Exchange Agreement, Relay will acquire all of the issued and outstanding shares of Cybeats for an aggregate purchase price of $7,180,000. At the time of closing, the Company shall pay an amount of $500,000 in cash, and the issuance of 9,311,475 common shares of the Company at a deemed price of $0.61 per share. On the date that is 120 days after closing, Relay shall have the option to satisfy $1,000,000 of the remaining purchase price either by way of issuance of 1,639,344 common shares of the Company at a deemed price of $0.61 (together with the shares issued on closing, the “Consideration Shares”) or by way of cash, or a combination of both.