Kape Technologies PLC, an Israeli cybersecurity firm that offers privacy and security solutions, has acquired ExpressVPN, a virtual private network provider, for $936 million. VPNs are directly related to the type of cybersecurity that Kape Technologies specializes in.
This may literally be a big deal. But it comes up way short of the $3 billion that Israeli owned and operated online digital gambling services provider and developer 888 Holdings just dished out to buy the British gambling company William Hill Bookmakers.
Kape says that its acquisition of ExpressVPN will allow it to create a “premium consumer privacy and security player in the industry marks a key milestone in the rapidly growing digital privacy space. It also further positions Kape to define the next generation of privacy and security protection tools and services to return greater control over the digital sphere to consumers.”
ExpressVPN’s parent company, Express VPN International Ltd, was founded in 2009 by Peter Burchhardt and Dan Pomerantz. The two are alumni of the Wharton School of Business.
Kape is a “privacy-first” digital security software provider to consumers. Following its acquisition of ExpressVPN, Kape will have 6 million paying subscribers, supported by a team of over 720 people across the globe.
So, why is a VPN company so valuable? Well, it is due to the high demand for a quality VPN service. Some such firms do not offer such a wide variety of different cover IPs. This is important because when a given IPN is seen to be hosting too many different users, a given website will catch on that it is a VPN and block that address. So the good VPN services offer many IP addresses and change them up frequently.
There is also the problem of traffic jams. If too many people use the same VPN at the same time then it wills slow down or not work at all.
People use VPNs for all sorts of purposes. Let’s say you are traveling abroad and the country that you are in does not have service from your favorite streaming site like Netflix or Hulu. With a VPN a traveler can pretend to be in his home country. Or maybe you just don’t want anyone to know what you are doing online. A VPN can cover your tracks.
But not all people use a VPN for nefarious purposes. If you are using the Wi-Fi service in a public place, a VPN can help to protect you from hackers. You can also use a VPN at home to protect against having your internet service provider spy on your web browsing for marketing purposes. The same thing is true when you use different apps or are worried about government surveillance.
We are delighted to share we will be joining Kape, a London Stock Exchange-listed company, to form the global leader in digital privacy.
Thank you to everyone who has supported us in building a more private, secure, and open internet over last 10 years.https://t.co/tMtASfJXPL
— ExpressVPN (@expressvpn) September 13, 2021
“We’ve admired the ExpressVPN team’s relentless pursuit of excellence and innovation and are excited to welcome them to Kape,” says Ido Erlichman, CEO, Kape Technologies. “With ExpressVPN to join the Kape family of world-leading privacy and security brands—together, we will have the vision, talent, and resources to take the industry to the next level. 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.”
“The ExpressVPN team is delighted to be joining the Kape Technologies family. It was essential to us that anyone we teamed up with shared our strong fundamental commitment to user privacy, and Kape has demonstrated that in spades through its family of brands,” says Dan Pomerantz, co-founder of ExpressVPN. “With access to greater capital and resources as part of Kape, we’re excited to be able to accelerate our product development, deliver even more innovation to our users, and protect them from a wider range of threats.”