Israeli cybersecurity company Kape Technologies (LSE: KAPE) has announced that it is acquiring ExpressVPN for $936 million deal. Kape, which is controlled by Teddy Sagi, says that the acquisition will help it define the next generation of privacy and security protection tools and services to return greater control over the digital sphere to consumers.
US company ExpressVPN is worth almost as much as Kape Technologies itself which is traded in London with a market cap of $1.1 billion, after its share price has risen 98% over the past year.
Kape Technologies CEO Ido Erlichman said, "We’ve admired the ExpressVPN team’s relentless pursuit of excellence and innovation and are excited to welcome them to Kape. With ExpressVPN now part of the Kape family of world-leading privacy and security brands - together, we have the vision, talent, and resources to take the industry to the next level. Controlling one's digital presence is at the forefront of every tech consumer’s mind now, and Kape is more committed than ever to innovating and delivering the tools internet users need to protect their data and rights. Kape is now synonymous with taking control of your digital experience."
The acquisition will broaden Kape’s reach from almost 3 million customers to serving over 6 million and the merged company will have a global team of 720 to further support them and drive innovation for future product offerings. The acquisition will also create a tier one digital privacy and security player best positioned to capitalise on the expected market growth. ExpressVPN has seen a compound annual growth rate (CAGR) of 35.1% over the past four years, signaling a strong need for consumer-friendly data privacy and security products to enable customers to take control of their digital lives.
Founded in 2009, ExpressVPN has helped transform VPNs from a niche technology into an essential privacy tool. Key to ExpressVPN’s efforts to bring VPN to the mainstream has been its work with other leading technology brands, putting privacy and security tools into the hands of internet users everywhere. Through its alliances with HP, HMD Global (home of Nokia phones), Acer, Dynabook (formerly Toshiba), and Philips, ExpressVPN is available out-of-the-box on millions of smartphones, tablets, and other devices.
Express VPN cofounder and CEO Dan Pomerantz said, "The ExpressVPN team is delighted to be joining the Kape Technologies family. It was essential to us that anyone we teamed up with shared our strong fundamental commitment to user privacy, and Kape has demonstrated that in spades through its family of brands. With access to greater capital and resources as part of Kape, we’re excited to be able to accelerate our product development, deliver even more innovation to our users, and protect them from a wider range of threats."
This is Kape Technologies third major acquisition in the past two years although it easily dwarfs the $127.6 million acquisition of US encrypted solutions company PIA in late 2019 and the $149 million acquisition of Israel security content startup Webselenese in March 2021.
Headquartered in the UK, Kape Technologies has its development center in Tel Aviv. ExpressVPN will continue to operate as an independent service, with its existing global team and leadership, including its two co-founders and co-CEOs.
Published by Globes, Israel business news - en.globes.co.il - on September 13, 2021
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