Kape Technologies PLC Acquisition of Intego for $16 million (4990V)
24 July 2018 - 4:00PM
UK Regulatory
TIDMKAPE
RNS Number : 4990V
Kape Technologies PLC
24 July 2018
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014
24 July 2018
Kape Technologies plc
("Kape" or the "Company")
Acquisition of Intego for $16 million
Earnings enhancing acquisition of leading malware protection and
cybersecurity SaaS solution
Kape (AIM: KAPE), the consumer security software business, is
pleased to announce the acquisition of the entire issued share
capital of Neutral Holdings Ltd trading as Intego ("Intego"), a
leading Mac and iOS cybersecurity and malware protection SaaS
business, for a total consideration of $16.0 million (the
"Acquisition"). Kape has acquired Intego from Bessemer Venture
Partners.
Intego is focused on the provision of malware protection,
firewall, anti-spam, backup, data protection and parental controls
software for Mac and is headquartered in Seattle, USA. The
Acquisition is expected to be earnings enhancing in the current
financial year. In the year to 31 December 2017, Intego generated
profit before tax of $1.4 million and significant levels of
recurring revenues from subscribers.
The Acquisition is directly in-line with Kape's core strategy to
accelerate its growth in the cybersecurity market through select
acquisitions, and brings significant strategic benefits to the
Company, namely:
-- Providing Kape with a strong foothold in the malware
protection market and expanding Kape's product portfolio with the
addition of complementary malware protection and security
solutions;
-- Bringing scope to leverage Intego's technology and strong
development skills and expertise to expand into additional
complementary software solutions;
-- Growing the Company's user base by 150,000 paying users, with high renewal rates of above 75%;
-- Generating cross-sell opportunities for both Kape's and
Intego's solutions across their respective customer bases; and
-- Creating levers for growth with Kape's digital marketing
expertise expected to accelerate Intego's user acquisition strategy
and increase profit margin following integration.
Intego is being acquired for a total consideration of $16.0
million cash, from internal cash resources, to be satisfied on
closing of the Acquisition. Intego's senior management team are
under a two-year obligation period to the company following
completion of the Acquisition.
Ido Erlichman, Chief Executive Officer of Kape, commented:
"The Acquisition presents an exciting opportunity for Kape, as
it is highly complementary to our existing solutions. Not only will
it broaden our product stack and R&D capabilities, but it
expands our user base and further enhances a number of cross-sell
opportunities. Furthermore, given Intego's recurring revenue model,
we anticipate greater visibility over future earnings, which is a
core priority as we transition to a SaaS-based business.
"Historically, Intego's software distribution has been focused
mainly on organic growth, which gives us significant scope to grow
Intego's user base and profit by leveraging Kape's user acquisition
expertise. I look forward to welcoming the Intego team to Kape and
continuing to drive the business forward as we progress to the next
phase of growth."
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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