The technology company Kape, which provides security solutions Cyberraised 220 million dollars, of which 120 million dollars were poured in by the controlling owner Teddy Sagiwhich after the issue will own 54.3% of shares Cape. The company, which is traded on the London Stock Exchange according to a market value of 977 million pounds, reported that the offering received high demands and therefore it was decided to increase the scope of the fundraising.
Among the participants in the offering are also institutional entities from Israel – Clal, Fenix, Mor, Safra and Nokd – and the offering was led by Barak Capital Underwriting. The issue was carried out at a price of 2.65 pounds per share, compared to a price of 2.71-2.75 pounds in the days before the recruitment was reported. Since the beginning of the year, the Cape share has weakened by 39.6%.
Cape Designates the fundraising funds to make acquisitions that will accelerate growth and according to the board of directors’ assessment, global conditions have increased the number of attractive opportunities. Last year, the company made a major acquisition, paying $936 million for US-based ExpressVPN.
In a report to the London Stock Exchange, Cape noted that a number of company executives also purchased shares as part of the recruitment, including CEO Ido Ehrlichman who purchased shares for approximately 90 thousand pounds and director Dan Pomeranz who purchased shares for 855 thousand pounds. Pomeranz is one of the founders of ExpressVPN.
In the first half of 2022, the company’s revenue totaled $302 million, a significant increase from $95.5 million in the first half of 2021 (before the ExpressVPN acquisition). Operating expenses also increased compared to the corresponding period, 3 times to 221 million dollars. However, operating profit more than quadrupled to $59 million. The adjusted EBITDA (earnings excluding interest, tax, depreciation and amortization) amounted to $88.9 million, about 29.4% of revenues, a slight decrease compared to the EBITDA rate of 30% in the first half of the year. Cape expects to end 2022 with revenues of $610-624 million and EBITDA of $166-172 million.
CEO Ehrlichman said: “The growth we experienced in revenues in the first half of the year, in the number of customers and in the company’s profits, together with the unprecedented support for the company from investors – give us a boost to continue implementing our growth strategy. Today we serve over 7 million paying customers worldwide and provide privacy and security in their digital lives. We believe that we can increase the existing product portfolio, as well as expand the number of customers we serve. Kape is currently in an ideal position to position itself as the leading and largest player in the world in the field of consumer privacy and security.”