KAPE announced the acquisition of ZenGuard GmbH and ZenMate, a multi-platform security software business, for total consideration of €4.8m. The company expects the acquisition to be earnings-accretive in the first full year of ownership.
Berlin-based ZenMate is focused on encrypting and securing internet connections and protecting individuals’ privacy and digital data. The acquisition will complement the company’s existing virtual private network (VPN) solution and will deepen its presence in Europe. The company expects to leverage ZenMate’s 50,000 premium customers, through cross-selling and up-selling opportunities.
As part of the integration, KAPE plans to extensively restructure and transform ZenMate. This involves leveraging and utilising the company’s technology infrastructure. The company expects ZenMate to be profitable in the next quarter.
KAPE is acquiring ZenMate from a number of venture capital and private investors. The company plans to fund the acquisition from its internal cash resources. KAPE’s CEO commented: “The provision of data protection solutions is a key focus for Kape, with the market expected to continue its double digit growth in the coming years. We are therefore delighted to add ZenMate to our existing portfolio as it is highly complementary, strengthens our presence in Europe and expands our SaaS user base. Kape continues to trade strongly and is confident the acquisition of ZenMate will further support the company’s growth ambitions.”.