Tycoon to take cyber firm private
Israeli billionaire Teddy Sagi has made an offer to acquire all of the Isle of Man-based cyber software business Kape Technologies.
Sagi is already the largest shareholder in Kape through his investment vehicle Unikmind, which owns 54% of the stock.
The 285p per share offer for the AIM listed business values Kape at £1.25 billion and the deal will see Kape leave the public markets.
Sagi first acquired the business when it was called Crossrider for $37 million, floating it on AIM for $250M.
After gaining a reputation as a malware tool, it rebranded as Kape Technologies in 2018, acquiring Zenmate in 2018 and Private Internet Access in 2019.
Sagi founded gambling software company Playtech and owns London’s Camden Market. He lives in Cyprus and Israel and has investment interests in property, gambling software, payments processing, and digital advertising.
Sagi said: “The last decade has witnessed the rapid growth of digital services with the expansion of e-commerce. Kape has, with our support as the majority shareholder, transformed through several strategic acquisitions, into a truly global leader in the digital privacy and security space. Having weighed the pros and cons of a public listing under the current macro uncertainties and thin stock market trading as well as new growth avenues, we are firm in our view that Kape’s next chapter in its corporate journey should be within the private arena. We are committed to Kape’s further growth within our group of companies, enabling it to exploit operational synergies and to access capital for its continuous growth, especially as the convergence of technologies is gaining momentum. Recognising that not all Kape Shareholders may wish to continue with us in a non-listed Kape, our cash offer represents a compelling proposition for fellow shareholders to realise their investment.”
Kape has grown both organically and via acquisitions, deploying more than $1.25bn of capital, successfully executing seven acquisitions over the past five years, to become a leading player in the fast-growing digital privacy market.
The most recent was the integration of ExpressVPN, acquired in December 2021 creating a global privacy platform.
Last year revenues at Kape were $623m with profits of $173m.