‘Kape Technologies’ to Acquire ExpressVPN in a $936 Million Deal

  • ExpressVPN is set to end up in the hands of ‘Kape Technologies’, the owner of three major VPN brands.
  • The successful VPN company will continue to operate as a separate entity, focusing on innovation, security, and privacy.
  • Gathering multiple VPN brands under one entity isn’t the best for consumers, but ExpressVPN is confident it’ll help them innovate more.

Kape Technologies,’ the owner of Zenmate VPN, CyberGhost VPN, and also Private Internet Access, is welcoming ExpressVPN under its umbrella, one of the most popular and successful virtual private internet access products in existence. As the company announced, the acquisition deal was sealed for $936 million, and it includes all assets, liabilities, and service entities that together comprise the ExpressVPN business. This will fuel Kape’s growth into six million paying subscribers worldwide, with half of those coming straight from ExpressVPN.

ExpressVPN released an enthusiastic announcement on its part, stating that Kape Technologies’ financial support and resources will enable them to innovate faster and provide their userbase with protection from a wider range of threats. The VPN firm also highlights Kape’s proven commitment to protecting users' privacy, with the policies and practices of the other VPN products belonging to the same family serving as a strong testament to that. However, ExpressVPN clarifies that they will remain a separate entity, so there will be no mergers with other VPN brands or anything like that.

Existing subscribers on the ExpressVPN platform should experience no changes in the service or their plans. In the long term, they should witness accelerated improvements in all things that make the product their favorite among a gazillion options in the field, but for now, this is just the plan. Also, ExpressVPN states that nothing will change on the privacy policy or their data retention practices, and whatever changes will be introduced in the policy will concern the reflection on the change of ownership.

VPN ownership should be a key aspect in consumer considerations, and as innocuous as these acquisitions are presented, anything can happen with the data when the userbase changes hands. It is true that the products owned by Kape Technologies haven’t engaged in shady practices, but nobody can tell if the owner will decide to do things differently in the future. In general, seeing VPN brands end up in the hands of a few corporate entities isn’t good for the consumers, no matter what assurances are given.

ExpressVPN is a profitable company with stable year-over-year growth (CAGR 35.1%). So for Kape Technologies, this was an investment in a tier-one VPN product that is set to grow stronger while creating new synergy and revenue generation opportunities for them.

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