Israeli-founded Kape Technologies said Monday it acquired ExpressVPN for $936 million to become one of the world’s leading players in the consumer market for digital security and privacy solutions.
The acquisition is one of the largest ever made of a foreign company by an Israeli hi-tech one.
With a combined six million paying customers, Kape will become the Israeli hi-tech company with the largest number of customers, ahead of Wix, which has about four million customers, the company noted.
Kape, founded in 2010 by businessman Teddy Sagi without any venture capital investment, is traded on the London Stock Exchange. The company has previously stated its intention to become a leading global player in the privacy market.
The acquisition significantly strengthens Kape’s ability to implement its strategic goals, expanding its global customer base, increasing customer value, expanding marketing capabilities, leveraging its customer acquisition platform, growing the company through acquisitions and expanding its product portfolio, the company said.
“The acquisition of ExpressVPN allows us to place Kape at the forefront of delivering the most innovative security and privacy solutions to all consumers around the world, and will allow consumers to regain control of their digital identity and life,” said Kape CEO Ido Erlichman.
The company has been on a buying spree lately. In March, it acquired Tel Aviv-based privacy and security content company Webselenese for $149m. and bought US digital privacy company PIA for $128m. in late 2019.
Following the acquisition, Kape will move to its new Israeli offices in the Azrieli City building in Tel Aviv. The company will now employ 720 people worldwide.