Kape shares surge on acquisition of Webselenese
By Josh White
Date: Monday 08 Mar 2021
(Sharecast News) - Digital privacy and security company Kape Technologies announced the acquisition of Webselenese for $149.1m (£107.74m) on Monday.
The AIM-traded firm described Webselenese as a digital platform providing "independent and highly valued" consumer privacy and security content to millions of users globally through "market-leading" review sites.
It said the acquisition would provide Kape with one of the broadest audiences for consumer digital privacy and security, and deepens its go-to-market capabilities, ensuring it was ahead of the market in consumer trends.
The board said it would also bring Kape "closer to the consumer", explaining that the insights and expertise being acquired would support its product development roadmap.
It said the "highly accretive" acquisition would see adjusted earnings per share increase 65%, and accelerate its earnings growth with the enlarged group expected to generate 2021 revenues of between $197m and $202m on a reported basis, and adjusted EBITDA of $73m to $76m.
"The acquisition of Webselenese is highly strategic for Kape, providing us with one of the most respected and far-reaching consumer privacy and security content businesses globally," said chief executive officer Ido Erlichman.
"By combining this deep level of consumer knowhow with our fast-growing product footprint, we believe the acquisition will be a force multiplier for Kape in our product development and customer reach.
"This significantly earnings accretive acquisition accelerates our strategic objective of becoming the go-to brand for consumer privacy and security globally."
At 1054 GMT, shares in Kape Technologies were up 24.15% at 237.75p.
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