News ExpressVPN sells to Kape Technologies for $936 million

Imranmagic

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Nov 14, 2016
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Kape Technologies has announced it will pick up ExpressVPN for $936 million, consisting of $237 million in Kape shares to ExpressVPN co-founders Peter Burchhardt and Dan Pomerantz, which will hand them a 14% stake in the combined entity, with the remainder to be paid in cash over the next two years.

ExpressVPN said it would remain a separate service, and its team would continue to grow. Of its approximately 290 employees, ExpressVPN has 48% involved in research and development. Kape called out ExpressVPN's OEM arrangements with HP, HMD Global, Acer, Dynabook, and Philips.

The VPN service has over 3 million customers, with over 40% in North America. During the 2020 fiscal year, ExpressVPN posted revenue of $279 million, up 37%, and adjusted EBITDA of $75 million, up 35%, Kape said in its regulatory filing.

Cross-selling aside, ExpressVPN claimed it would be able to provide better protection from a "wider range of threats".

"We've been impressed by Kape's clear commitment to protecting the privacy of users," ExpressVPN said in a blog post.

"Their track record with upholding the exacting privacy practices and policies of other privacy protection services under the Kape umbrella is a strong testament to how seriously they take their responsibility to respect user privacy and rights."
 

Gandalf_The_Grey

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Is Kape's acqusition of ExpressVPN cause for concern?
Kape Technologies PLC, a company that changed its name from Crossrider to distance itself from its checkered past, has acquired the popular VPN service ExpressVPN. Express VPN is Kape's fourth acquisition in the VPN niche, as it acquired CyberGhost VPN, Zenmate, and Private Internet Access in recent years.
The lucrative VPN industry is in a phase of consolidation. Kape acquired its fourth VPN provider making it one of the largest, if not the largest, VPN provider with a subscription-based model.

The company has a checkered past. Previously named Crossrider, it had a bad reputation for benefitting from potentially unwanted software offers, with security companies such as Malwarebytes classifying Crossrider products as adware. Founder of the company was a former Israeli agent according to reports.

It is unclear how much influence Kape Technologies has over ExpressVPN, Private Internet Access, or its other acquisitions. All state that they are acting largely independent from the parent company.

The companies past activities are cause for concern. If you ignore that for a moment, there is still the question of whether consolidation is good for the industry and users worldwide. Larger companies have more resources and these could be used to improve standards and functionality, but they may also be used to increase pricing and dominate niches.
 

SpiderWeb

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Lord Ami

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OK, I thought you meant something else.
As if massive amount of data leaked :)

To my understanding, this is not the case here. Just one/couple of servers and whatever was on their disks.
 
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SpiderWeb

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Aug 21, 2020
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OK, I thought you meant something else.
As if massive amount of data leaked :)

To my understanding, this is not the case here. Just one/couple of servers and whatever was on their disks.
Sure... believe the downplaying all you want. I have been a Windscribe Pro user since 2016. I'm not buying their excuses. This is a massive data breach.
 
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Azure

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They already talked about in this thread.

It was good enough for me
 

SpiderWeb

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Aug 21, 2020
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They already talked about in this thread.

It was good enough for me
Apologies for going off-topic, OP. But I think your security model should not be based on a company's word or statement. But I mean at the end of the day it's your privacy, not mine.
 
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