ExpressVPN sells to Kape Technologies for $936 million
Kape Technologies has announced it will pick up ExpressVPN for $936 million, consisting of $237 million in Kape shares to ExpressVPN co-founders Peter Burchhardt and Dan Pomerantz, which will hand them a 14% stake in the combined entity, with the remainder to be paid in cash over the next two years.
ExpressVPN said it would remain a separate service, and its team would continue to grow. Of its approximately 290 employees, ExpressVPN has 48% involved in research and development. Kape called out ExpressVPN's OEM arrangements with HP, HMD Global, Acer, Dynabook, and Philips.
The VPN service has over 3 million customers, with over 40% in North America. During the 2020 fiscal year, ExpressVPN posted revenue of $279 million, up 37%, and adjusted EBITDA of $75 million, up 35%, Kape said in its regulatory filing.
Cross-selling aside, ExpressVPN claimed it would be able to provide better protection from a "wider range of threats".
"We've been impressed by Kape's clear commitment to protecting the privacy of users," ExpressVPN said in a blog post.
"Their track record with upholding the exacting privacy practices and policies of other privacy protection services under the Kape umbrella is a strong testament to how seriously they take their responsibility to respect user privacy and rights."