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Acquisition Opportunity

Hilco Streambank is seeking offers to acquire the intellectual property assets of XQ Digital Resilience Limited t/as XQ Cyber (in Administration) (“XQ” or the “Company”) on behalf of Paul Appleton and Paul Cooper of David Rubin & Partners, the Joint Administrators of the Company.

OFFER DEADLINE

Friday 1 November 2019 at 4pm GMT

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Business Overview

Established in 2014, XQ is a UK-based cyber security company that provides automated penetration testing and consultancy services to businesses and their supply chains.

The Company’s lead product, CyberScore™, is a fully automated penetration testing technology that assesses and mitigates cyber security risks faced by an organisation. This software was originally used and developed through XQ’s consultancy arm, based on a need identified in the market for an affordable and automated penetration testing product.

After download, CyberScore™ automatically detects devices on the user’s network and carries out a detailed inspection to check for vulnerabilities in the perimeter security. The software will detect obsolete software, supported software that is missing security fixes, and this information is encrypted and sent to XQ’s secure data centre for analysis. Using this information, CyberScore’s™ algorithms calculate the user’s security score, identify the areas of greatest concern, and present the data back to the customer with actionable information via the CyberScore™ portal.

The tool can be utilised for several different online capabilities depending on the needs of the user: CS for Cyber Essentials; CS for Due Diligence; CS for Insurance; CS for Supply Chain; CS for Enterprise; and CS for SMEs.

CyberScore™ is provided to customers on an annual subscription basis. Subscriptions differ based on user requirements and the size of the company, with the largest around £30,000 per annum. This presents an affordable offering in the market for compliance penetration testing.

The Company generated revenue of circa £419k in the last 12 months, £176k of which have been generated from Cyberscore sales. It was forecasting accelerated growth over the coming years, with a target of sales in excess of £4m in 2020. In the Company's 2018 financial statements, over £1m was capitalised on its balance sheet in relation to the development of the software. Monthly revenues for September 2019 are around £58k.

Assets available for sale include the Company’s software, brand, trade mark, and associated marketing assets.

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Available Assets

Software

CyberScore™, the Company’s automated penetration testing tool, is designed to secure a user’s site from harm being done to the organisation, either directly or via third parties. The automated software conducts an analysis of a business’s IT vulnerabilities and provides a get-well plan or risk management report to users in order to address any issues identified.

Customer Database

The Company keeps a salesforce database of several thousand leads for sale of the software. This database has been generated from interest in the software captured across the business and from purchased leads.

XQ Brand

The XQ brand is well established in the cyber security industry and white hat hacking community and the CyberScore software has won awards. The brand has been developed extensively by the consulting arm of the business as this engages them with the market and potential CyberScore™ users.

Trade Marks

The ‘CYBERSCORE’ brand name is protected by a registered trade mark in the United Kingdom.

Domain Name

The domain name at www.xqcyber.com

Website & Informational Blog

The Company’s professionally designed website (hosted at www.xqcyber.com) provides details of the CyberScore™ software and services of the Company.

This is accompanied by an informational blog entitled ‘XQ Labs’, which serves as a marketing tool for XQ and a further element of their approach to assisting their customers with cyber security. The blog content primarily features case studies and CyberScore™ user stories.

Social Media Platforms

Rights in XQ social media accounts which have been a focus of development for the in-house marketing team:

  • LinkedIn: XQ Cyber
  • Twitter: @XQCyber

 

Sale Process

Offers for the intellectual property assets are due Friday 1 November 2019 at 4pm GMT

All expressions of interest and offers should be directed to Hilco Streambank in writing. Please contact Hilco Streambank to obtain an NDA and for more information regarding the sale process. A Bid Submission Form for submitting offers is available on request.

Key Terms & Conditions

The bidder acknowledges that Hilco acts as an agent for the Joint Administrators of the Company who offer for sale only what right, title and interest the Company possesses in the assets. The information provided has not been verified by Hilco and bidders are deemed to have carried out their own due diligence.

VAT at 20% will be added to the price if applicable. A buyer's premium of 20% of the sale price is payable by the winning bidder. Legal completion to occur within 5 business days of bid acceptance. Hilco Streambank's full Terms and Conditions apply. 

 

Contact Us

For further information about the sale process please contact the following Hilco Streambank representatives:

Interested Parties

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