Israel based company Crossrider has acquired Romanian company CyberGhost for a total of 9.2 million euro, Reuters reported.
Reportedly, Crossrider will pay an initial consideration of €3.2 million in cash, €3 million in shares and an EBITDA (Earnings before interest, tax, depreciation and amortization )based earn-out payment of up to €3 million.
The deal is in line with the Crossrider’s strategy to broaden its product offering to service high growth consumer markets, of which cyber security is a key vertical and, according to this company, this acquisition is expected to be earning enhancing in the current financial year.
“The acquisition of CyberGhost is closely aligned with our stated strategy to develop our B2C market reach and we are particularly excited to be able to provide the best in class privacy solutions to millions of users worldwide,” Crossrider’s CEO Ido Erlichman said.
CyberGhost’s founder and CEO, Robert Knapp, will continue to manage and grow the business under Crossrider’s ownership.
“This is an exciting step in the development of our business and marks another important milestone in our transformation into a highly scalable, online distribution platform,” Robert Knapp said, SeeNews reported.
Founded in 2011 in Bucharest, Romania, CyberGhost is the creator of one of the world’s most reliable privacy and security solutions in the world. CyberGhost is a cyber security SaaS (Software as a Service) provider with a focus on the provision of virtual private network solutions.The CyberGhost team is currently formed of 42 professionals with a strong background in the IT field, based both in Romania and in Germany, the latter being responsible for most of the software development.
Crossrider, on the other hand, is a online distribution and digital product company founded in 2011 in Israel. The company utilizes its proprietary marketing technology platforms to prospect, optimize and monetize mobile and web media. Crossrider powers all aspects of an online product to create a superb user experience. In September 2014, Crossrider has listed on the London Stock Exchange, raising 52.5 million euro in a successfully oversubscribed IPO, SeeNews reported.