JERUSALEM, Sep 13 (Reuters) – British-Israeli digital security software provider Kape Technologies PLC (KAPE.L) said Monday it was buying virtual private network (VPN) company ExpressVPN for $ 936 million in a deal that aimed to create a “premium privacy and security player for consumers.”
Kape said the acquisition would expand its customer base from nearly 3 million to more than 6 million, creating a world-class digital privacy and security company best positioned to capitalize on expected market growth.
ExpressVPN has seen an average annual growth rate (CAGR) of 35.1% over the past four years, amid strong demand for consumer-friendly privacy and security products.
Consumers are increasingly turning to VPNs like ExpressVPN to disguise their identity on the internet.
“Controlling their digital presence is a priority for every tech consumer today, and Kape is more committed than ever to innovating and delivering the tools internet users need to protect their privacy and rights,” said Ido Erlichman, CEO of Kape Technologies .
Dan Pomerantz, co-founder of ExpressVPN, said the company will have more capital and resources to “accelerate our product development, innovate even more for our users, and protect them from a wider range of threats”.
Kape said that ExpressVPN continues to run as an independent service on a daily basis.
Reporting by Steven Scheer, editing by Louise Heavens
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