Kape Technologies purchases German security software outfit for €4.8m

(Sharecast News) - Consumer security software firm Kape Technologies on Tuesday confirmed its purchase of multi-platform security software outfit ZenGuard and Zenmate (Zenmate) for €4.8m.The acquisition of Berlin-headquartered Zenmate, which aims to encrypt and secure internet connections and protect privacy and digital data, is complementary to Kape's CyberGhost VPN solution and will offer the company increased exposure to continental Europe, particularly Germany.Ido Erlichman, chief executive of Kape, said: "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."Zenmate currently has a stable of 50,000 customers operating under a software as a service model, although with the German outfit having registered a loss of €1.1m in the year ended 31 December 2017, Kape expects to implement an extensive restructuring programme.Even so, Kape said in a statement that Zenmate is expected to be earnings accretive across the first full year of ownership as it intends to employ digital marketing to increase customer numbers."Kape continues to trade strongly and is confident the acquisition of ZenMate will further support the company's growth ambitions," Erlichman added.Kape Technologies' shares were up 1.78% at 114.50p at 1021 BST.