CY4GATE S.p.A. — M&A Activity 2024

Jul 26, 2024

Press release

FOLLOWING THE EXERCISE OF PUT & CALL AGREEMENTS, CY4GATE SIGNED THE CLOSING FOR THE ACQUISITION OF AN ADDITIONAL 15.33% STAKE OF DIATEAM, A FRENCH COMPANY ACTIVE IN CYBER SECURITY, THUS ACHIEVING A 70.66% STAKE

THE CONSOLIDATION OF THE GROUP ALSO CONTINUED OUTSIDE THE DOMESTIC MARKET THANKS TO UP-SELLING AND CROSS-SELLING OPPORTUNITIES

Rome, July 26, 2024 - CY4GATE (CY4.MI), a national and European player in cyber security and cyber intelligence, has signed the closing for the purchase of a further 15.33% of DIATEAM, a French company specialising in the design, development and implementation of advanced systems for testing, validation and training in the cyber security domain, for government and corporate clients, thus coming to hold 70.66% of its share capital.

Emanuele Galtieri, CEO of CY4GATE Group commented: "After more than one year since the purchase of the first 55.33% stake of the French company DIATEAM, following previous agreements, we acquired a further 15.33% stake because we are decidedly satisfied with the value brought and the synergies developed with the French market, in an increasingly marked perspective of internationalisation of our Group. I am certain that this initiative will further strengthen our position in the Italian and European cyber security market thanks to the important and complementary know-how of Cy4Gate and DIATEAM".

OPERATION DESCRIPTION

Cy4Gate, today, following the exercise of the envisaged "Put & Call Agreements" exercisable in the three-year period 2024 - 2026 and signed on the occasion of the purchase of the first 55.33% of DIATEAM (cfr. Press Release of January 30, 2023), signed the contract for the purchase of the additional 15.33% of DIATEAM, at a price of € 1.6 million.

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OPERATION STRATEGY

The additional investment in DIATEAM is intended to continue the consolidation of the Group outside the domestic market through upselling and cross-selling opportunities, as well as to enrich the company's cyber security product portfolio to position itself as a qualified European centre of competence in the sector.

This operation continues to strengthen the company's cyber security value chain, in particular through:

• the advanced "Hybrid Cyber Digital Twin", a hybrid simulator that can be easily interfaced with the socalled "Operations Technologies" (e.g. industrial Scada systems) to support testing and validation activities and make advanced training of cyber specialists more effective; the product also features a "transportable" configuration in modular racks that allow high flexibility in tactical deployment;
• a diversified portfolio of advanced "hands-on" and immersive cyber training modules, also using the proprietary cyber digital twin and "Capture the Flag" cyber contests that are entirely designed in-house. These are innovative training solutions that complement the training offerings of Cy4Gate's existing cyber Academy.

Press release

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DIATEAM S.A.S.

DIATEAM is a French-registered company (headquartered in Brest) founded in 2002, which today employs 25 people, 75% of whom the engineering department. The company is specialized in the design and development of technologies applied to cyber security for both institutional and corporate clients. Among its products is the hybrid digital twin, a platform that can easily recreate a "digital twin" of the client's IT network and interface with the OT (e.g. industrial realities or critical infrastructures) for cyber resilience testing and validation purposes and for advanced training. A structured training plan with several specialized cyber security modules and the ability to intervene with an in-house professional team complete the company's offering.

Below are some of the main economic and financial indicators as at 31 December 2023:

• − Revenues: € 2.6 million
• − Value of production: € 2.9 million
• − EBITDA: € 0.6 million
• − NFP: € 1.3 million (cash positive).

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This press release is available on the storage mechanism "****" () and on the Company's website www.cy4gate.com

About CY4Gate S.p.A.

The Company was founded in 2014 to meet an unconventional demand for cyber security. Listed on Euronext Growth Milan in June 2020, CY4Gate S.p.A. has also been listed on the Euronext Milan Star segment since June 2023. CY4Gate S.p.A. was conceived to design, develop and manufacture technologies and products, systems and services that meet the most stringent and modern "Cyber Intelligence & Cyber Security" requirements expressed by Law Enforcement Agencies, Armed Forces, Institutions and Companies, both at home and abroad. Representing a unique Italian industrial project, CY4Gate S.p.A. operates in all facets of the cyber market, with proprietary products that meet both information collection and analysis and security needs: QUIPO and AMICO in the world of Cyber Intelligence along with RTA, Diateam, CTI and Pronto Cyber in the world of Cyber Security.

For more information:

Marco Clerici +39 335 775 0702 m.clerici@equita.eu

Specialist Investor Relation CY4Gate S.p.A.

Equita SIM S.p.A. Marco Latini CFO e Investor Relations Manager investors@cy4gate.com

Investor Relation

CDR Communication
Silvia Di Rosa:	+39 335 786 4209	silvia.dirosa@cdr-communication.it
Luca Gentili:	+39 348 292 0498	luca.gentili@cdr-communication.it

Media Relation

CDR Communication

Angelo Brunello: +39 329 211 7752 angelo.brunello@cdr-communication.it Marianna Tremolada: +39 348 242 3039 marianna.tremolada@cdr-communication.it