Israeli billionaire Teddy Sagi has made an offer to buy all of the remaining shares of cyber software business Kape Technologies and plans to delist it.
The entrepreneur is already the largest shareholder in Kape through his investment vehicle Unikmind, which owns 54.8 per cent of the stock.
Kape is incorporated in the Isle of Man, headquartered in London and had offers around the world. The offer of 285p per share values Kape at £1.25bn.
Kape develops, acquires, and distributes a variety of leading digital security software products. In the last few years Kape has grown its customer base to seven million paying users. Kape is the owner of popular virtual private network service ExpressVPN.
Unikmind believes that the best way to support Kape in its buy and-build strategy is through long-term capital investment conducted away from public markets.
Sagi, the owner of Unikmind and founder of the gambling software company Playtech, said: “The last decade has witnessed the rapid growth of digital services with the expansion of e-Commerce.
“Kape has, with our support as the majority shareholder, transformed through several strategic acquisitions, into a truly global leader in the digital privacy and security space.
“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.
“We are committed to Kape’s further growth within our group of companies, enabling it to exploit operational synergies and to access capital for its continuous growth, especially as the convergence of technologies is gaining momentum.
“Recognising that not all Kape shareholders may wish to continue with us in a non-listed Kape, our cash offer represents a compelling proposition for fellow shareholders to realise their investment.”
Should Unikmind acquire at least 75 per cent of Kape’s voting rights, they intend that Kape will make an application to the London Stock Exchange for the cancellation of the admission to trading of Kape shares on AIM, in which case, it would be possible to obtain the delisting on an accelerated timeline.
Kape’s board has not yet set out its opinion on the offer, but has granted consent to Unikmind to make this offer under certain terms.