Kape Technologies PLC Acquisition of ZenMate (1187E)
October 16 2018 - 2:01AM
UK Regulatory
TIDMKAPE
RNS Number : 1187E
Kape Technologies PLC
16 October 2018
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014
16 October 2018
Kape Technologies plc
("Kape" or the "Company")
Acquisition of ZenMate for EUR4.8 million
Extending Kape's reach in VPN SaaS provision
Kape (AIM: KAPE), the consumer security software business, is
pleased to announce the acquisition of the entire issued share
capital of ZenGuard GmbH and ZenMate ("ZenMate"), a multi-platform
security software business with a focus on the provision of virtual
private network ("VPN") solutions, for a total consideration of
EUR4.8 million (the "Acquisition").
ZenMate is a digital privacy company, headquartered in Berlin,
focused on encrypting and securing internet connections and
protecting individuals' privacy and digital data.
The Acquisition is highly complementary to CyberGhost, Kape's
existing VPN solution, and will deepen the Company's presence in
Europe and Germany in particular. ZenMate currently has 50,000
premium customers on a SaaS-basis with a strong retention rate,
which will further broaden cross-selling and up-selling
opportunities across the Company's product portfolio.
As part of the integration of the Acquisition, Kape will
implement an extensive restructuring plan intended to transition
ZenMate from a loss of EUR1.1 million in the year to 31 December
2017 to profitability in the next quarter. This plan includes
leveraging existing operational synergies, including utilising
Kape's technology infrastructure and extending its user acquisition
capabilities.
It is anticipated that the Acquisition will be earnings
accretive in the first full year of ownership. As ZenMate's current
marketing initiatives are primarily organic, there is significant
potential to utilise Kape's digital marketing expertise in order to
accelerate user acquisition and increase margins.
ZenMate is being acquired from a number of venture capital funds
and private investors, including the founders of the business, for
a total consideration of EUR4.8 million in cash, funded from Kape's
internal cash resources, to be satisfied on closing of the
Acquisition.
Ido Erlichman, Chief Executive Officer of Kape, commented:
"The provision of data protection solutions is a key focus for
Kape, with the market expected to continue its double digit growth
in the coming years. We are therefore delighted to add ZenMate to
our existing portfolio as it is highly complementary, strengthens
our presence in Europe and expands our SaaS user base.
Kape continues to trade strongly and is confident the
acquisition of ZenMate will further support the Company's growth
ambitions."
Enquiries:
Kape Technologies plc via Vigo Communications
Ido Erlichman, Chief Executive Officer
Moran Laufer, Chief Financial Officer
Shore Capital (Nominated Adviser & Broker)
Toby Gibbs / James Thomas +44 (0)20 7408 4090
Vigo Communications (Financial Public Relations)
Jeremy Garcia / Antonia Pollock
kape@vigocomms.com +44 (0)20 7390 0237
About Kape
Kape is a cybersecurity company focused on helping consumers
around the world to have better experience and protection in their
digital life. Kape develops and distributes a variety of digital
products in the online security space. The Company utilises its
proprietary digital distribution technology to optimise its reach
and create a superb user experience. Kape offers products which
provide online security, privacy and an optimal online experience.
Kape's vision is to provide online autonomy for a secure and
accessible personal digital life, with team of over 350 people
across seven locations worldwide.
www.kape.com
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END
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