Kape raising at least $110m for more acquisitions

Privacy and security software company Kape Technologies announced on Tuesday that it was planning to raise between $110m and $200m, to help accelerate its growth through acquisitions.

The AIM-traded firm said it would raise the funds through a placing with institutional investors and an offer to retail investors through the PrimaryBid platform at 265p per share.

That would represent a discount of 4.6% to the 30-day volume-weighted average price of the company's shares to 12 September.

The company said the placing was being conducted through a bookbuild, with majority shareholder Unikmind having agreed to subscribe for 35,478,149 shares at the placing price, equivalent to $110m.

In addition to the placing, retail investors would be offered the opportunity to participate in the fundraising through the PrimaryBid platform that was expected to open on 14 September.

Kape said it had grown both organically and via acquisitions, deploying more than $1.25bn of capital, successfully executing seven acquisitions over the last five years, to become a “leading player” in the growing digital privacy market.

Its board said that with “global scale” and a track record of successfully integrating and growing businesses acquired, the directors believed the firm had “significant” opportunities to partner with other businesses operating in the digital privacy market which could benefit from Kape's technology and leading market position.

Ongoing turbulent global market conditions had given rise to a number of attractive potential acquisition opportunities at compelling valuations, which the directors believed could enhance the group's offering.

The board said it believed that the fundraising, together with the group's strong free cash flow generation and existing debt facilities of $200m, would “significantly” enhance Kape's ability to accelerate its growth through acquisitions.

“In the event of excess demand, the company reserves the right to increase the size of the placing in its sole discretion,” the board said in its statement.

“Certain of the company's directors, and certain members of Kape staff, have communicated their intention to participate in the placing.”

At 11133 BST, shares in Kape Technologies were down 6.93% at 271.75p.

Reporting by Josh White at Sharecast.com.