(Alliance News) - Kape Technologies PLC late Monday said it is to buy one of the most renowned known global virtual private network providers, in a deal worth almost USD1 billion.
ExpressVPN is a virtual private network the offers users a way to protect their internet traffic and keep their identities private online. In 2021, TechRadar and CNET named the service their Editors' Choice.
It is one of the most recognised brands in the digital privacy space with premium products serving over 3 million customers - of which over 40% are in North America.
The AIM-listed digital security software provider said it has entered into a sale and purchase agreement
to acquire ExpressVPN from Access Global Ltd for USD936 million.
In order to part fund the acquisition, the Isle of Man-headquartered firm said it intends to raise gross proceeds of USD354 million by means of an underwritten placing to institutional investors. In addition to the placing new and existing retail investors will be offered the opportunity to participate on the PrimaryBid platform, it added.
The proposed underwritten placing will raise minimum gross proceeds of USD354 million at a minimum price of 337.5 pence per share. The stock closed up 0.2% at 356.56p on Monday, giving the company a market value of GBP796.9 million.
The placing will be conducted by way of an accelerated bookbuild which will be launched immediately, Kape said.
In addition, USD237 million in ordinary shares will be issued to the co-founders of ExpressVPN, Peter Burchhardt and Dan Pomerantz, while a deferred cash consideration is to be paid in two installments of USD172.5 million each, 12 and 24 months post-completion of the acquisition.
The company's largest shareholder, Unikmind Holdings, has also entered into an agreement in which it has agreed to subscribe in the placing for shares with an aggregate value of up to GBP256.5 million.
Unikmind will also provide financing for the deferred consideration payments and debt refinancing.
Kape said the acquisition will create a "premium digital privacy and security player" best positioned to capitalise on the growth in the digital privacy market.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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