![]() Particularly against the backdrop of the constant rise in cyber attacks globally and enforcement of information protection regulations (GDPR) designed to protect user privacy. The acquisition of LTMI aims to enable Kape to position itself as the leading player in the fledgling privacy field. As of 2019, the total expected merged company revenue is about $110 million and adjusted EBITDA was about $30 million. The merged company will rank among the top three VPN players in the US and Europe. LTMI has over a million SaaS subscribers (similar to Kape) but about half of them in the US, so LTMI’s acquisition makes Kape the largest player in the US market. Like Kape, LTMI’s revenue model is based on SaaS (software as a service) that creates a high level of certainty of revenue forecasts. After the acquisition is complete, Kape plans to replace its owner’s loan with long-term external financing. The purchase will be funded by Kape from its cash funds and debt from its controlling shareholder, Teddy Sagi, which will provide her with a $40 million owner’s loan. LTMI is a growing and profitable company: its revenue in 2018 was $ 47.4 million (up 18% year-over-year), and adjusted EBITDA was $14.7 million. Given its size, the acquisition of LTMI represents a significant leap for Kape and will significantly accelerate the cash flow from operating activities. In addition to the web anonymity solution, the company’s product portfolio includes a private browser for iOS and Android users, and its support, Internet browsing speed as well as secure file storage and a search engine that ensures privacy and is based on a first-of-its-kind cryptographic system. Realizing annual synergies of between $3-4 million, mainly in server infrastructure and additional operating costs.Įstablished in 2009 and operating in the state of Colorado, LTMI is a virtual private network (VPN) company that specializes in providing secure and encrypted Internet access. ![]() Increasing Kape’s revenue and EBITDA, consolidated revenue forecasts for 2020 are between $120-123 million, and EBITDA forecasts between $35-38 million during the period. You can support us for as little as $1 via PayPal at you.įollowing the acquisition, the Israeli company expects to double its number of customers to more than two million paying customers in the SaaS model. ![]() It means we can continue to make Jewish Business News available to everyone. Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. Will you offer us a hand? Every gift, regardless of size, fuels our future. ![]()
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