ExpressVPN sells to Kape Technologies for $936 million
Companies simultaneously claim to respect user privacy while boasting increased cross-selling opportunities.
www.zdnet.com
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. The VPN service has over 3 million customers, with over 40% in North America.
"Significant cross sell and revenue opportunities across the platform; top line and operational synergies greatly improve [customer lifetime value to acquisition cost] ratios and are anticipated to generate cost savings of $19 million in 2022 and $30 million on an annualised cost basis from 2023," Kape said.
Cross-selling aside, ExpressVPN claimed it would be able to provide better protection from a "wider range of threats".
This is not Kape's first VPN purchase -- it previously bought VPN companies ZenMate and Cyberghost, and used to specialise in scareware under the Crossrider name.
They're the same company that also bought PIA (Private Internet Access). What the company did under it's previous name:
The UK-based company was cofounded by an ex-Israeli surveillance agent and a billionaire previously convicted of insider trading who was later named in the Panama Papers. It produced software which previously allowed third-party developers to hijack users' browsers via malware injection, redirect traffic to advertisers and slurp up private data.
This practice, commonly called traffic manipulation, is condemned web-wide. And the only difference between it and one of the oldest forms of cyberattack, called man-in-the-middle (MitM), is that you clicked "agree" on the terms and conditions. Crossrider was so successful it ultimately drew the gaze of Google and UC Berkeley, which identified the company in a damning 2015 study.
Crossrider changed its name to Kape Technologies PLC in 2018, in CEO Ido Erlichman's words, to escape the "strong association to the past activities of the company." The name change supposedly accompanied a full turnaround for Kape, as it said it was exiting malicious adware and moving into cybersecurity. However, in the same year, Kape still operated the infamous scareware Reimage -- a potentially unwanted program that positions itself as a computer performance enhancer but which has been known to signal false positives on security threats in order to persuade you to pay for its premium service.