Published on: July 25, 2018

Acquisition in malware protection market

Kape has announced the acquisition of Intego, a malware protection and cybersecurity SaaS solution, for U$16 million in cash. Intego is focused on the provision of malware protection, firewall, anti-spam, backup, data protection and parental controls software for Mac. The deal fits directly into Kape’s acquisition strategy of accelerating its growth in the cybersecurity market. It provides the Group with the opportunity to realise synergy benefits through additional sales, a lower cost structure and the application of Kape’s skill in efficient online user acquisition to Intego’s products. In paying 11.4x historical profit before tax, Kape gains ‘significant’ levels of recurring revenues from subscribers through Intego’s strong position in the malware protection market. Management expects the acquisition to be earnings enhancing in the current financial year. Our estimate changes also reflect that as we add U$0.3 million and U$1.1 million to EBITDA for FY 2018E and FY2019E respectively. We leave revenues unchanged ahead of the anticipated H1 trading update.

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