LONDON (Alliance News) - Security software business Kape Technologies PLC said Tuesday that it has acquired ZenGuard GmbH and ZenMate for EUR4.8 million in cash.
ZenMate is a Berlin-based digital privacy company focused in securing internet connections to protect individuals privacy data.
The acquisition is expected to be earnings accretive in the first full year of ownership, and will be highly complementary to CyberGhost, Kape's existing virtual private network, and will deepen the company's presence in Europe and Germany in particular.
Once the acquisition is completed, Kape will implement a restructuring plan to return ZenMate to profit from its 2017 loss of EUR1.1 million.
"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," said Chief Executive Officer Ido Erlichman.
Shares in Kape Technologies were up 2.0% at 114.70 pence on Tuesday.
