In the latest development, CyberGhost acquire PIA in what seems to be a good deal.
The winds of change are blowing in the world of virtual private networks (VPNs). In a move that could significantly alter the landscape, Kape Technologies, the owner of the popular VPN service CyberGhost, has announced its intention to acquire Private Internet Access (PIA) for a cool $95.5 million.
This acquisition, reported by Vox Markets, marks a significant moment for both companies. Let's delve deeper into the details and explore the potential implications.
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Table of Contents
Breaking Down the Deal
The $95.5 million price tag for PIA is divided into two parts: a cash payment of $52.9 million and the issuance of over 42.7 million new Kape Technologies shares.
This issuance not only facilitates the acquisition but also helps clear a $32.1 million debt owed by LTMI Holdings, PIA's parent company. The total value of the acquired LTMI holdings, therefore, climbs to $127.6 million.
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What Does This Mean for Users?
If the acquisition goes through as planned, Kape Technologies will fully absorb the Private Internet Access identity. The timeline for completion suggests early next year. While the long-term impact remains to be seen, some potential changes are worth considering:
- Consolidated Services:Â Users might see a combined service offering under the Kape Technologies banner. This could potentially lead to a wider range of server locations, features, and pricing options.
- Integration Concerns:Â Merging two large VPN providers can be a complex process. Users might experience temporary service disruptions or changes in user interfaces as the integration unfolds.
- Privacy Questions:Â Some users express concerns regarding Kape Technologies' past controversies related to bundled software. It's crucial for Kape to ensure complete transparency about data handling practices and user privacy under the new structure.
A Game-Changer for Kape Technologies?
Kape Technologies CEO, Ido Erlichman, views this deal as a “game-changer” that positions the company as a global leader in digital privacy. This move aligns with Kape's history of acquiring top VPN providers, having previously acquired CyberGhost in 2017 and ZenMate in 2018.
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The acquisition not only expands Kape's subscriber base (PIA boasts over 1 million active users, primarily in the US) but also brings valuable assets into the fold. These include:
- Private Search Engine (www.private.sh):Â Offers users an alternative search experience focused on privacy.
- LibreWolf Browser:Â A privacy-focused web browser built on Firefox code.
- Plus Ultra Software:Â A tool that aims to optimize internet connection speeds.
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The Road Ahead
The CyberGhost-PIA acquisition is a significant development with the potential to reshape the VPN landscape. While the long-term impact for users remains uncertain, it presents both opportunities and challenges for Kape Technologies.
Here are some key questions to consider moving forward:
- How will Kape Technologies integrate the acquired services while maintaining user trust?
- Will users benefit from a wider range of features and competitive pricing?
- How will the acquisition address past controversies surrounding bundled software?
Only time will tell how this acquisition plays out. However, one thing is clear: the competition in the VPN market is heating up, and this move by Kape Technologies is a bold step towards becoming a dominant player in the realm of digital privacy.
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Beyond the Acquisition: What to Consider for VPN Users
As a VPN user, it's important to stay informed about such developments. Here are some tips:
- Research both CyberGhost and PIA:Â Familiarize yourself with their strengths, weaknesses, and past controversies.
- Monitor updates from both companies:Â Stay tuned for official announcements regarding the integration process and potential changes in services.
- Consider alternatives:Â Don't be afraid to explore other VPN providers if the merged entity doesn't meet your needs or raise privacy concerns.
By staying informed and weighing your options, you can ensure you choose a VPN service that aligns with your online security and privacy priorities.
Note: This was initially published in November 2019, but has been updated for freshness and accuracy.
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About the Author:
Abraham Faisal is a professional content writer. He has a strong passion for online privacy, cybersecurity and blockchain and is an advocate for online privacy. He has been writing about these topics since 2018 and is a regular contributor to a number of publications. He has a degree in Computer Science and has in-depth knowledge of the ever-evolving world of digital security. In his free time, he likes to travel and explore new cultures.
Wow. So looks like the top-tier independent companies are becoming fewer and fewer.
yes, exactly..the unexpected acquisitions seems to be the new trend now.