- This is one of the largest acquisitions ever made by a foreign hi-tech company.
- The acquisition is expected to enhance innovative private and security features.
- Kape becomes a company with the largest number of customers.
Kape Technologies PLC has agreed to purchase Express VPN for $936 million. The acquisition is expected to deliver high earnings that will contribute to its completion.
If you have been watching closely, Express VPN had a $279.4 million revenue in 2020 with $74.8 million as adjusted earnings. The completion is therefore expected to generate a higher revenue of up to $624 million in 2022.
Part-funding for the acquisition
The company does not plan to cover the cost alone. By placing shares on the market at a minimum price of 337.5 pence, the funds are expected to help fund part of the acquisition. In addition, Kape will also be placing separate retail offers for ordinary shares on the PrimaryBid platform. The shares will however not exceed $9.4 million.
In total, the sale of shares is expected to cover the equivalent of $237 million. The $345 million expected to be paid in cash will be covered in a two-part instalment. The first instalment will be in a year and the next one 24 months after the close.
Express VPN to join Kape’s brands
Express VPN is expected to join a list of other Kape’s brands such as Zenmate VPN and CyberGhost VPN among others.
The aim of the acquisition is to complement the firm’s cybersecurity tools and secure the data rights of their users. Express VPN has been listed as one of the best VPNs when it comes to protecting users.
With the security bugs addressed previously in Windows 11 Beta version, it is a breath of fresh air to see a firm prioritizing its users’ needs.
What do you enjoy most about Expressvpn? Share your top features in the comment section below.