Teddy Sagi wishes to delist his company, Cape (KAPE) from the London Stock Exchange and today offers the shareholders to purchase all their shares from them at a price of 285 pence (compared to yesterday’s closing price of 259.5 pence per share), which reflects a total consideration of 700 million dollars and according to a company value of 1.5 billion dollars. The stock was traded this morning at a value of 1.3 billion dollars and is now jumping 12% on the secondary exchange (AIM). Sagi owns 54.9% of his company’s shares (worth about $800 million), which provides cyber security and privacy solutions.
Teddy Sagi stated following the decision that he wishes to make the move “in light of the current macroeconomic uncertainty and the little trading in the company’s shares”. Sagi also estimates that the company has “new avenues of growth that Kape has”, and therefore “we are determined that the next chapter in Kape’s life cycle is in the private arena”.
In 2022, Cape, which is managed by Ido Ehrlichman, recorded revenues of 623 million dollars, the EBITDA amounted to 173 million dollars and analyst forecasts for the entire year 2023 stand at revenues of 690 million dollars.
Kape said upon publishing the preliminary results that “the integration of the acquisition of ExpressVPN, the largest acquisition in the company’s history, exceeds its predictions in its contribution and that in less than a year Kape was able to unite the management, product, R&D, marketing and customer support teams of the two companies and created cost savings as a result of synergy operational of 9 million dollars (about 30 million dollars in annual terms)”. As of the end of 2022, the consolidated company has 7.4 million paying customer subscribers, an increase of 12% compared to 2021.
Last September, Kape completed a fundraising of 222.5 million dollars, where among the investors were also institutional bodies in Israel and Teddy Sagi himself. And in November it signed a new bank debt agreement in the amount of 425 million dollars from the bank syndicate that includes Bank Leumi, Bank of Ireland, Barclays, Citizens Bank, BNP Paribas, Citi Commercial Bank, HSBC and Credit Suisse.
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