Kape Technologies (KAPE); acquires Intego for $16m

Published on 24-07-2018 07:47:26
Author Sparks Team

KAPE acquired the entire issued share capital of Neutral Holdings Ltd trading as Intego from Bessemer Venture Partners for a total cash consideration of $16.0m. The acquisition is expected to be earnings accretive in the current financial year.

Intego, based in Seattle, USA, focuses on the provision of malware protection, firewall, anti-spam, backup, data protection and parental controls software for Mac. During the year ended 31 December 2017, Intego generated profit before tax of $1.4m and significant levels of recurring revenues from subscribers. Intego’s senior management team are under a two-year obligation period to the company following completion of the acquisition.

This acquisition provides KAPE with strong foothold in the malware protection market and expands the company’s product portfolio. It also expands the company’s user base by 150,000 paying users, with high renewal rates of above 75%. Additionally, the acquisition enables KAPE to leverage Intego’s technology and strong development skills and expertise to expand into additional complementary software solutions.

Ido Erlichman, KAPE’s CEO, said: “The acquisition presents an exciting opportunity for KAPE, as it is highly complementary to our existing solutions. Not only will it broaden our product stack and R&D capabilities, but it expands our user base and further enhances a number of cross-sell opportunities. Furthermore, given Intego’s recurring revenue model, we anticipate greater visibility over future earnings, which is a core priority as we transition to a SaaS-based business. Historically, Intego’s software distribution has been focused mainly on organic growth, which gives us significant scope to grow Intego’s user base and profit by leveraging KAPE’s user acquisition expertise.”

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