Quick Heal Technologies Limited — Capital/Financing Update 2021

Jan 14, 2021

Quick Heal Technologies Ltd.

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Regd. Office: Marvel Edge, Office No. 7010 C & D, 7th Floor, Opposite Neco Garden Society, Viman Nagar, Pune 411014. Tel: +91 20 66813232 | Email: info@quickheal.com CIN - L72200MH1995PLC091408

Ref No.: QHTL/Sec/SE/2020-21/52

The Manager, The Manager, Corporate Services, Corporate Services, BSE Limited, National Stock Exchange of India Limited, 14[th] floor, P J Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Ref: Security ID : QUICKHEAL Symbol: QUICKHEAL Security Code: 539678 Series : EQ

Subject: Quick Heal Technologies Limited to invest in L7 Defense Ltd, Israel.

Dear Sir / Madam,

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), 2015, we wish to inform you that Quick Heal Technologies Limited is investing in L7 Defense Ltd, Israel.

Please find enclosed a release on the captioned subject issued by the Company.

Further, pursuant to regulation 30(4) of SEBI (Listing Obligations and Disclosure Requirements), 2015, enclosed are the details of the aforesaid investment.

As permitted, this letter is being submitted under Sd/- mode due to work from home as per the Government advisory on Covid-19 and as a part of safety measure.

This is for your information and records.

For Quick Heal Technologies Limited

Sd/-

A. Srinivasa Rao Company Secretary

www.quickheal.co.in

FOR IMMEDIATE RELEASE January 14, 2021

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Media Contact: Akash Gosavi +91 20 6681 3287 akash.gosavi@quickheal.co.in

Quick Heal Technologies makes USD 2 million strategic investment in Israel based L7 Defense

The move is a reflection of Quick Heal’s commitment to support innovative cybersecurity startups and strengthen its solutions stack for enterprise customers

Pune, January 14, 2021: Quick Heal Technologies Limited, one of the leading providers of IT Security and Data Protection solutions for consumers, businesses, and government, has signed a definitive agreement to invest USD 2 million in L7 Defense. L7 is an Israel based cybersecurity start-up specializing in Application Program Interface (API) Security and Next Generation Web Application Firewall (NG-WAF). Quick Heal Technologies had invested USD 300k in L7 Defense in the previous financial year.

According to Gartner, by 2021, 90% of web enabled applications will be exposed to attacks due to API weaknesses, up from 40% of the apps in 2019. Hence, API Security has become one of the top cybersecurity concern for enterprises. L7 Defense’s proprietary AI powered Ammune™ technology provides protection against a range of attacks targeting APIs like distributed denial of services (DDOS), BOT attacks and other malicious threats helping customers secure their applications.

Since Quick Heal’s previous investment, L7 Defense has acquired customers in financial, telecom and IT industries across US and Europe. Moreover, the investment enables strategic alignments between both the companies for Quick Heal Technologies to expand its range of enterprise solutions under the ‘Seqrite’ umbrella and introduce L7’s flagship products in market stronghold of India as well as other regions in APAC and EMEA.

The investment reiterates Quick Heal’s ongoing efforts to invest in disruptive technologies that will shape the future of cybersecurity while supporting innovative start-ups.This is Quick Heal’s third investment in the last 18 months and augments its commitment to secure the digital transformation journey of its customers. In addition to L7 Defense, Quick Heal had recently invested in Singapore based Ray Pte Ltd.

Dr. Kailash Katkar, Managing Director and Chief Executive Officer, Quick Heal Technologies, said, " At Quick Heal Technologies, we are always on the lookout for right investment opportunities by evaluating new platforms and technologies that enable us to support the digital transformation journey of our customers. L7 Defense has proven its unique capabilities in the area of API Security and NGWAF which led us to further increase our investment. Simultaneously, this move enables ‘Seqrite’ to foray into application security and strengthen our solution stack to secure modern enterprises against the next-generation of cyber-attacks.”

Yisrael Gross, Co-Founder, L7 Defense, said, " We are delighted to strengthen and further solidify our relationship and bond with Quick Heal Technologies. This investment is strategic, and will enable us to further extend our technological leadership, to increase our exposure and gain further market awareness. We are thrilled and energized to have support from Quick Heal Technologies. This vote of confidence reinforces our resolve and motivation to become the API security leader in this extremely dynamic market."

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About Quick Heal Technologies Ltd:

Quick Heal Technologies Limited is one of the leading providers of IT Security and Data Protection Solutions with a strong footprint in India and an evolving global presence. Incorporated in the year 1995, with a registered office in Pune, it is an all-round player in cybersecurity with presence in B2B, B2G and B2C segments across multiple product categories – endpoints, network, data and mobility.

With its state-of-the-art R&D centre and deep intelligence on the threat landscape, Quick Heal helps in simplifying security by delivering the best in class protection against advanced cyber-attacks. Its portfolio includes solutions under the widely recognized brand names ‘Quick Heal’ and ‘Seqrite’ across various operating systems and devices.

For more information, please visit: https://www.quickheal.co.in/

About L7 Defense:

L7 Defense is an API security startup company. Its Ammue™ solution actively protects APIs and APIbased applications from related threats, while utilizing unsupervised, innovative AI/ML technology. Ammune™ solution was recognized by Frost & Sullivan as leading the API Security market and is known for its unsurpassed automation, superior threat coverage while keeping normal traffic undamaged. It is deployed at financial, telecom and SaaS sectors in North America, Europe, and APAC.

For more information about L7 Defense and its products, visit www.L7Defense.com

Details of Investment – As required under SEBI Regulations

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----- Start of picture text ----- Sr. No. Particular Details1 Name of the Target entity L7 Defense Ltd.(size, turnover etc) Revenue of CY2019 (Jan-Dec) is 156,000 USD2 Whether acquisition would fall within Norelated party transaction and whetherthe promoter group/group companieshave any interest in the entity beingacquired? If yes, nature of interest anddetails thereof and whether the same isdone at “arms-length”3 Industry in which the entity being Cyber Securityacquired belongs4 Objects and effects of acquisition This investment will mark Quick Heal’s foray(including but limited to, disclosure of into the fast-growing NG-WAF and APIreasons for acquisitions of target entity, Security Market and expand its portfolio ofif its business is outside the main line of enterprise security solutions under brandbusiness of the listed entity) ‘Seqrite’. At present, Seqrite offers EndpointSecurity, Unified Threat Management,Secure Web Gateway, Enterprise MobilityManagement, Full Disk Encryption and DataLoss Prevention which are backed by itsindigenously developed GoDeep.AIframework. This investment will bringtogether Quick Heal’s strong legacy backedby deep intelligence on the threat landscapeand L7 Defense’s next-generation Ammune™technology to deliver robust defense againstthe next wave of AI-driven DDoS cyber-attacks5 Brief details of any governmental or This will come under automatic route byregulatory approvals required for the filing ODI with authorized dealeracquisition6 Indicative time period for completion of 1 [st] week of February 2021the acquisition7 Nature of consideration- whether cash All Cash Considerationconsideration or share swap and detailsof the same8 Cost of acquisition or the price at which 2,000,600 USDthe shares are acquired9 Percentage of shareholding/control 1,49,925 Preference Sharesacquired and /or number of shares 2,328 Ordinary Sharesacquired10 Brief background about the entity L7 Defense is an Israel-based API Securityacquired in terms of products/line of start-up company. It’s proprietary Ammune™business acquired, date of incorporation, AI technology autonomously inline protectshistory of last 3 years turnover, country from cyber-attacks, in a very high precision.in which the acquired entity has L7 Ammune™ was recognized among themost promising cyber solutions in the----- End of picture text -----

	presence and any other significantinformation (in brief)		marketplace while the company was recentlyrecognized as a Key innovator company.L7 was incorporated on May 14, 2015 inIsrael. L7 has a subsidiary in Luxembourg.Revenue (Fiscal year ended December)CY17 - USD 10,000CY18 - USD 60,000CY19 – USD 156,000