Digital security firm Kape’s top shareholder makes $1.5 billion buyout offer

LONDON  –  Kape, the digital security and privacy software firm that owns ExpressVPN has received a buyout offer from its top shareholder.

Teddy Sagi, founder of gambling software Playtech owns 54.8% of the companies stock and announced he intends to pick up the remaining shares at 258 pence each ($3.44 per share) which is 9.7% higher than it’s previous closing price on February 10.

"Having weighed the pros and cons of a public listing under the current macro uncertainties and thin stock market trading as well as new growth avenues, we are firm in our view that Kape's next chapter in its corporate journey should be within the private arena," Sagi said. Kape previously rejected a similar offer two months ago for 265 pence per share calling the bid insufficient.

Kape’s shares were up 12% earlier in the day on Monday and 2022 proved to be a record financial year for Kape thanks to an increased demand for its security products. Regardless Kape’s board has not yet made a decision on whether to recommend shareholders accept the offer, instead urging them not to take any action yet.

The firm which holds Sagi’s shares, Unikmind Holdings said that it intends to call for a general meeting to delist the company and drive personal acquisitions no matter the offer’s outcome. “While Unikmind supports all organic growth initiatives, it believes a continued, proactive buy-and-build strategy by Kape will remain the most promising driver of growth. It also believes that given current macroeconomic challenges and related capital markets uncertainties, the availability of potential acquisitions may be increased,” they said.