British-Israeli digital security software provider Kape Technologies has agreed to buy virtual private network (VPN) firm ExpressVPN for $936 million.
Kape said the acquisition expands its customer base to more than 6 million from nearly 3 million and would create a tier one digital privacy and security firm best positioned to capitalise on the expected market growth.
ExpressVPN has seen a compound annual growth rate (CAGR) of 35.1 percent over the past four years amid strong demand for consumer-friendly data privacy and security products.
Consumers have increasingly turned to VPNs such as ExpressVPN to obscure their identities on the internet.
“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,” said Ido Erlichman, chief executive of Kape Technologies.
Dan Pomerantz, co-founder of ExpressVPN, said the firm will have more capital and resources to accelerate product development, deliver even more innovation to users, and protect them from a wider range of threats.
Kape said ExpressVPN will continue to operate day-to-day as an independent service.
ExpressVPN is one of the most recognised brands in the digital privacy space with premium products serving over 3 million customers – of which over 40 percent are in North America – and generating revenue of $279.4 million and Adjusted Proforma IFRS Adjusted EBITDA of $74.8 million for the year ended 31 December 2020, up 37.0 percent and 34.9 percent respectively year on year.
ExpressVPN server networks covers over 160 VPN server locations across 94 countries, providing a fast and reliable connection for ExpressVPN’s global user base. ExpressVPN has 290 employees worldwide, not including the larger ExpressVPN team of contractors and customer support agents.
ExpressVPN’s VPN apps are available for Windows, Mac, iOS, Android, Linux and select routers, alongside alternative configurations for consoles and streaming boxes, as well as extensions for select popular browsers.
Kape recently announced the acquisition of Webselenese for $149.1 million.