Kape, which is controlled by businessman Teddy Sagi, acquires Webselenese for $ 149.1 million

Posted on Mar 8, 2021 by Ifi Reporter

Kape, which is controlled by businessman Teddy Sagi, acquires Webselenese for $ 149.1 million. WebSilence, founded by Ren Greenberg and Ariel Hochstadt about a decade ago, has developed a content optimization platform that specializes in content and privacy issues.
Cape Town acquires WebSales in a stock and cash transaction: $ 116.6 million will be paid in cash and $ 32.5 million in new shares it will issue to WebSens' shareholders. $ 35 million of the cash amount will be paid by Cape. The balance, about $ 85 million of the cash portion, will be financed by a bridging loan from Sagi, the controlling shareholder. Upon completion of the acquisition, Cape Town will convert the bridging loan into a long-term bank loan, which will set the debt / EBITDA ratio at 1.7 - but this ratio is expected to fall to about 1 by the end of 2021. Sagi himself holds 64.3% of Cape Town's share capital.
Ran Greenberg and Ariel Hochstadt, the founders of Webbels, began their careers as economists until they became high-tech entrepreneurs and friends in founding the company. Greenberg previously served as VP of Business Development at Elron, and as head of the economics department at Dun & Bradstreet Israel. Prior to Google, he served in various management positions such as CEO of MDS, bulletin board.
WebSelence operates through two major platforms - VPN MENTOR and Safety Detectives - which promote content that protects privacy and cyber security, including reviews, recommendations and tips on a wide range of security and privacy tools that can be purchased online. The company has about 29 employees and about 400 writers around the world, most of them freelancers, in about 30 languages. The company has 8 million unique monthly users.
Cape Town said the acquisition of WebSalence would accelerate the company's organic growth in digital privacy and security markets, and would be a significant milestone in the company's path to becoming the world's leading Internet privacy solution.
Cape Town said WebSales' revenue rose 91 percent to $ 64.5 million from $ 34 million in 2019 and EBITDA, profit before financing expenses, tax, depreciation and amortization, rose 204 percent in 2020 to $ 30 million. Compared to $ 10 million in 2019. Cape said that together with WebSalence, it is expected to generate revenue of about $ 210 million in 2020 and adjusted EBITDA of about $ 80 million.
Ido Erlichman, CEO of Cape Town, noted that "this is an acquisition that is a direct result of our A&M strategy to expand its marketing channels, to support the company's growing product mix."


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