Kape Technologies Share Discussion Threads

[igoe104] 24/7/2018 07:36

Acquisition of Intego for $16 million

Kape Technologies plc
("Kape" or the "Company")

Acquisition of Intego for $16 million

Earnings enhancing acquisition of leading malware protection and cybersecurity SaaS solution

Kape (AIM: KAPE), the consumer security software business, is pleased to announce the acquisition of the entire issued share capital of Neutral Holdings Ltd trading as Intego ("Intego"), a leading Mac and iOS cybersecurity and malware protection SaaS business, for a total consideration of $16.0 million (the "Acquisition"). Kape has acquired Intego from Bessemer Venture Partners.

Intego is focused on the provision of malware protection, firewall, anti-spam, backup, data protection and parental controls software for Mac and is headquartered in Seattle, USA. The Acquisition is expected to be earnings enhancing in the current financial year. In the year to 31 December 2017, Intego generated profit before tax of $1.4 million and significant levels of recurring revenues from subscribers.

The Acquisition is directly in-line with Kape's core strategy to accelerate its growth in the cybersecurity market through select acquisitions, and brings significant strategic benefits to the Company, namely:

· Providing Kape with a strong foothold in the malware protection market and expanding Kape's product portfolio with the addition of complementary malware protection and security solutions;

· Bringing scope to leverage Intego's technology and strong development skills and expertise to expand into additional complementary software solutions;

· Growing the Company's user base by 150,000 paying users, with high renewal rates of above 75%;

· Generating cross-sell opportunities for both Kape's and Intego's solutions across their respective customer bases; and

· Creating levers for growth with Kape's digital marketing expertise expected to accelerate Intego's user acquisition strategy and increase profit margin following integration.

Intego is being acquired for a total consideration of $16.0 million cash, from internal cash resources, to be satisfied on closing of the Acquisition. Intego's senior management team are under a two-year obligation period to the company following completion of the Acquisition.

Ido Erlichman, Chief Executive Officer of Kape, commented:

"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. I look forward to welcoming the Intego team to Kape and continuing to drive the business forward as we progress to the next phase of growth."

Enquiries:
Kape Technologies plc
Ido Erlichman, Chief Executive Officer
Moran Laufer, Chief Financial Officer

via Vigo Communications
Shore Capital (Nominated Adviser & Broker)
Toby Gibbs / James Thomas

[phone]
Vigo Communications (Financial Public Relations)
Jeremy Garcia / Antonia Pollock
[e-mail]
[phone]

[gswredland] 23/7/2018 16:39

I don't think so either
Topped up this morning

[starpukka] 23/7/2018 15:41

I was waiting for around 103 to top up but we may not get there this time.

[ali47fish] 23/7/2018 10:43

i tried to email the investor relations person the email was not delivered! no idea why?

[igoe104] 20/7/2018 14:08

I think your right Tallprawn, July is a terrible month for small caps that don't issue any type of news. they drift down for no-real reason, great opportunity to top up with Kape, we all know any statement is going to be extremely positive and a strong mark-up is on the cards.

[tallprawn] 20/7/2018 13:58

There could well be a trading statement here next week... Last year was 24th July.The last update in May stated they had seen a strong start to the year - The share price has drifted since then so good opportunity to buy here now imo.

[igoe104] 28/6/2018 08:18

Yes these have excellent potential.




Product development update
- Launch of CyberGhost 7.0 app across Apple and Android platforms
- Development of Chrome and Firefox browsers plug-in for CyberGhost
Kape (AIM: KAPE), the consumer security software business, is pleased to announce several key developments to CyberGhost, Kape's Virtual Private Network ("VPN") SaaS solution.
Following CyberGhost's acquisition by Kape in March 2017, mobile subscribers have increased 100%, reflecting the rising adoption of VPN by individuals looking to safeguard both the security and privacy of their mobile devices. The development of the CyberGhost 7.0 privacy app for iOS and Android is in response to this significant growth and forms part of Kape's software development road map.
The new app focuses on increased accessibility for new customers and usability features, including a one-click activation button to immediately turn on and off privacy mode in a matter of seconds. The augmented design and user interface are intended to meet the demands of CyberGhost's growing and increasingly diverse 'mobile' customer base. The maximum number of devices offered per CyberGhost subscription has also increased from five to seven, further demonstrating the alignment of subscriber demands both at home and on the move.
In addition, Kape has launched a CyberGhost Google Chrome and Mozilla Firefox plug-in. The plug-in is based on a distributed computing platform and operating system, which enables greater freedom and access to information on the internet to individuals worldwide. There has already been significant traction for this product globally demonstrating Kape's standing in the privacy market.
Ido Erlichman, Chief Executive Officer of Kape, commented:
"We are thrilled with the significant progress we have made with CyberGhost since its acquisition in March 2017, in combining a great product with Kape's user acquisition knowhow and technologies. These initiatives are testament to the increasing traction and considerable opportunity that exists across our core CyberGhost offering. We believe the launch of our new app will increase our addressable market, which sits firmly at the heart of our growth strategy to both broaden our customer base and extend our product reac

[malcolmmm] 28/6/2018 08:15

Yes, added

[ayl30] 28/6/2018 07:09

Encouraging rns this am

[gswredland] 19/6/2018 21:46

Thanks guys
Good to be invested here and great to see Rivaldo onboard!

[aishah] 19/6/2018 11:03

Thx rivaldo for the link. Forgot to paste it doh!

Material earnings upside if the right acquisition comes along. Cash 41% of cap.

[rivaldo] 19/6/2018 10:58

Thanks AISHAH - here's a direct link:

[glawsiain] 19/6/2018 10:41

Cheers AISHAH

[aishah] 19/6/2018 08:31

Edison initiate coverage:
Kape has made solid progress in refining its product set and is now fully focused on the consumer cyber security segment. By leveraging its marketing platform to scale new products while also transitioning to a subscription model, we expect to see strong revenue growth and margin expansion translating to our forecast 16% three year CAGR in EPS. With $69.5m net cash, acquisitions should enhance this further. We believe the shares should be on a growth rating yet despite the recent performance, the 21.8x FY18 P/E is below peers. We see upside towards 157p.

[malcolmmm] 14/6/2018 15:36

Ah must check, yes received mine ,very nice too

[crazycoops] 14/6/2018 14:47

Or people reinvesting their divis?

[aishah] 14/6/2018 14:29

Yep, was thinking the same.

[malcolmmm] 14/6/2018 14:17

limited amount available on line. Perhaps the 'In The Pipeline' acquisitions are about to be announced.

[rivaldo] 14/6/2018 13:41

Nice bounce from the dip.

[onjohn] 08/6/2018 13:21

Beauty roll on 127

[middlesboroughfc] 08/6/2018 11:37

BBBBBBOOOOOOOOOOOOM SHAKE DA ROOOM

[middlesboroughfc] 08/6/2018 10:26

We have made a strong start to 2018, with record monthly sales, compared to equivalent period, achieved across our products as we continue to reap the benefits of our renewed focus on the Cybersecurity market....

[middlesboroughfc] 08/6/2018 10:20

Nice 10k buy, turning upwards


Onwards!

[msarwar014] 06/6/2018 10:08

Buys being marked as sell @103

[aishah] 05/6/2018 14:59

Cash at 31 Dec was $69.4m, so they have plenty of firepower for acquisitions like CyberGhost and enhance value.