Kape Technologies plc (LSE: KAPE), which provides cybersecurity solutions, has raised $220 million, of which $120 million came from controlling shareholder Teddy Sagi. Following the offering, Sagi will hold 54.3% of Kape. The company, traded on the London Stock Exchange at a market cap of £977 million, reported that demand for the offering was high and that it was therefore decided to expand it.
Among the participants were Israeli financial institutions Clal Insurance, The Phoenix Holdings, More Investment House, and Noked Capital. The offering was led by Barak Capital Underwriting. The offering was priced at £2.65 per share, which compares with a price of £2.71-2.75 in the sessions preceding it. So far this year, Kape’s share price has fallen by 39.6%.
Kape says that the proceeds will be used for acquisitions to accelerate the company’s growth, "the Board of Kape believing that global market conditions have given rise to a number of highly attractive potential acquisition opportunities at compelling valuations." Last year, Kape paid $936 million to acquire US company ExpressVPN.
In the first half of 2022, Kape had revenue of $302 million and adjusted EBITDA of $88.9 million. For 2022 as a whole, Kape expects revenue in the range of $610-624 million and EBITDA of $166-172 million.
Kape CEO Ido Erlichman said, "This fresh injection of capital will help us accelerate our organic growth plans alongside capitalising on potential acquisition opportunities. I look forward to updating all our key stakeholders on our ongoing progress as we seek to fully exploit our market-leading position, from which we provide our 7 million customers with cutting edge digital privacy and security solutions."
Published by Globes, Israel business news - en.globes.co.il - on September 15, 2022.
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