London-based cybersecurity firm Kape Technologies has acquired Israeli IT firm Webselenese in a deal worth nearly $ 150 million (£ 108 million).
Kape, which provides privacy-focused software, said the blended cash and equity deal will help expand its audience and fuel organic growth.
Kape shares jumped more than a fifth after the deal was announced this morning.
Tel Aviv-based Webselense provides consumer content and privacy to millions of users through a number of comparison websites that offer reviews and advice on online security tools.
Kape, which saw its shares increase by nearly a quarter last year amid strong demand for cybersecurity services, said the deal would make it easier to develop its future products and lower the cost of acquiring it. clients.
Under the terms of the deal, Kape will acquire owners of Webselense Uma Capital and Ani Ariel for a total of $ 149.1 million in cash and stock.
After the deal closes, the founders of the Israeli company will purchase Kape shares worth around $ 1.5 million.
Kape said he would use $ 32.5 million of his own cash to help fund the transaction, as well as $ 84.1 million from a $ 120 million loan from TS Next Level Investments, a subsidiary of Kape’s majority shareholder, Unikmind Holdings.
The Aim-listed company said the combined group is expected to post revenue of $ 197 million to $ 202 million in 2021 and adjusted profit of $ 73 million to $ 76 million.
“The acquisition of Webselenese is highly strategic for Kape, providing us with one of the most respected and extensive consumer privacy and security content companies in the world,” said Ido Erlichman, Managing Director of Kape.
“By combining this level of consumer know-how with our rapidly growing product footprint, we believe the acquisition will be a force multiplier for Kape in the development of our products and the reach of our customers.”