Written By Billionaire Teddy Sagi, who made his fortune through gambling software, has upped his offer for UK cybersecurity company Kape Technologies in a deal worth approximately £346 million ($479 million USD). Sagi’s investment firm, Brickington Trading, has increased its offer from 115p to 125p per share, a 9% increase.
Kape Technologies, formerly known as Crossrider, develops software products for internet security, privacy, and optimization. The company’s products include CyberGhost VPN, Reimage PC Repair, and Intego Mac Security.
Sagi, who holds a 25.3% stake in Kape Technologies, originally made his offer in December 2020. The bid was initially rejected by Kape’s board of directors, who deemed it undervalued the company. In response, Sagi filed a motion to remove the board members who opposed the offer, but the motion was defeated at the company’s annual meeting in March 2021.
Despite the initial rejection, Sagi has continued to pursue the acquisition. In a statement, Brickington Trading said that the increased offer “represents a compelling opportunity for Kape shareholders to realize value from their investment at an attractive premium.”
The increased offer also represents a premium to Kape’s share price before Sagi’s initial offer. At the time, Kape shares were trading at around 80p per share, which means the new offer represents a premium of over 50%.
The increased offer has been welcomed by some Kape shareholders. One of the company’s largest shareholders, former CEO and founder of Crossrider, Shlomo Kramer, has publicly supported the deal, stating that “the company needs new management, and the offer on the table is the best deal available.”
However, not all shareholders are in favor of the acquisition. Investment management firm Canaccord Genuity, which holds a 12.8% stake in Kape, has stated that the offer undervalues the company and that it plans to reject it.
The increased offer comes at a time when cybersecurity companies are in high demand due to the increasing number of cyber threats faced by businesses and individuals. Kape Technologies has experienced strong growth over the past year due to the increased demand for its products, with revenue increasing by 97% in 2020.
It remains to be seen whether Sagi’s increased offer will be accepted by Kape’s board of directors and shareholders. However, the acquisition could represent a significant opportunity for Sagi to expand his business interests into the growing cybersecurity industry.
