Kape Technologies buys rivals ExpressVPN for $936m
- With over 3 million users, ExpressVPN is one of the world's biggest VPN providers.
- Kape Technologies already owns three other VPNs in Private Internet Access, ZenMate and CyberGhost.
- ExpressVPN brand and services are expected to operate as usual.
British-Israeli digital security software company Kape Technologies has announced that it is acquiring ExpressVPN – one of the world's biggest virtual private network (VPN) providers. The deal, worth $936 million, doubles Kape's customer base from 3 million to 6 million users.
The main motivation for the deal between both sides appears to be the opportunity to grow and capitalize on the rapidly expanding cybersecurity market.
Dan Pomerantz, a co-founder of ExpressVPN, said that this acquisition will let the firm have more resources to "accelerate product development, deliver even more innovation to our users, and protect them from a wider range of threats." With a compound annual growth rate (CAGR) of 35.1% over the past four years, ExpressVPN was already one of the biggest and fastest-growing VPN companies in the business.
For Kape Technologies, this move allows forming a tier-one digital privacy and security firm, ready to capitalize on the expected market growth. "Controlling one's digital presence is at the forefront of every tech consumer’s mind now, and Kape is more committed than ever to innovating and delivering the tools internet users need to protect their data and rights," said Ido Erlichman, chief executive of Kape Technologies.
ExpressVPN will not be the only VPN owned by this company. Kape Technologies already owns three more. In March 2017, it has acquired CyberGhost, in October 2018, it purchased ZenMate, and in November 2019 – Private Internet Access.
ExpressVPN is expected to exist alongside the other VPN products, with no changes announced to day-to-day operations.