Digital security software provider Kape Technologies is acquiring ExpressVPN for $936 million (£674.5 million) as it seeks to create a strong consumer privacy and security player in the industry.
ExpressVPN, which is a British Virgin Islands-registered company, is not just for consumers as it also offers a business VPN. It explains that a business VPN usually also provides a layer of encryption to protect against surveillance and data theft. Such VPNs are meant to protect the privacy of the company and not necessarily the individual.
Ido Erlichman, CEO, Kape Technologies, comments: “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. Kape is now synonymous with taking control of your digital experience.”
London-based Kape says the acquisition will broaden its reach from almost three million customers to over six million. It will also create a global team of 720 people.
Kape, which is controlled by billionaire Teddy Sagi, has been making some progress from its days as an AIM-listed advertising technology business. It now has a market capitalisation of £800 million.
Kape reels off the stats to support its acquisition. ExpressVPN was founded in 2009 – and has seen a compound annual growth rate (CAGR) of 35.1% over the past four years. It has servers across 94 countries.
ExpressVPN has three million paying subscribers, as noted above, of which 40% are in North America. Last year its revenue increased 37% to $279 million (£201.3 million).
A search on the name of ExpressVPN generally reveals positive reviews – although it is deemed expensive by some. Rivals include Surfshark, NordVPN and Windscribe.
The company’s “alliances” include HP, HMD Global (home of Nokia phones), Acer, Dynabook (formerly Toshiba) and Philips.
Over the past decade, ExpressVPN has developed various new solutions. For example, Lightway is a consumer VPN protocol (open sourced in August 2021), while TrustedServer is for VPN server technology and has RAM-only servers.
The company also has ExpressVPN Digital Security Lab, an independent research arm.
Under the Kape umbrella, ExpressVPN will continue to operate day-to-day as an independent service, with its existing global team and leadership, including its two co-founders. The acquisition is subject to a number of customary conditions and is expected to close in Q4 2021.
Kape was founded in 2013 and has offices in the UK, Israel, Germany, Romania, France, the Philippines, the US, Cyprus and Isle of Man. It provides a subscription-based platform and a SaaS-based operating model.
Last year, eWeek explained ‘How to Make Sure Your VPN Access Remains Seamless‘. The article looked at how to add new VPNs, traffic steering, and more.