- Software company, VPN Technologies (CSE:VPN) has signed a letter of intent, agreeing to acquire two VPN companies
- The companies, Tunnello SAS and Pelgo Systems SAS, have provided over a million users with virtual private network business
- VPN Technologies will acquire both companies for approximately C$530,000, gaining $20,000 to $30,000 a month in cash flow
- Per the letter of intent, the company has 60 days to reach a definitive agreement on the acquisition
- Before the market opens, VPN Technologies (VPN) is trading at six cents per share
Software company, VPN Technologies (CSE:VPN) has signed a letter of intent, agreeing to acquire two VPN companies.
VPN’s, or virtual private networks, create private networks from public internet connections. In doing so, they provide users with online privacy and anonymity, making their online actions untraceable.
VPN Technologies intends to acquire 100 per cent of Tunnello SAS and Pelgo Systems SAS. The acquisition will include the two companies’ proprietary technologies, customer databases, brands, and intellectual properties.
The two companies have provided over a million users with cross-device functionality, and fast connection speeds. Their services include Android apps, and a chrome extension for secure, 4096-bit, military-grade encryption.
Pending regulatory approval, VPN Technologies will pay approximately C$530,000 for the acquisitions. The company expects to gain approximately $20,000 to $30,000 per month in estimated cash flow from the two businesses.
The acquisition will also provide a foothold into the European market. VPN Technologies is continuing to build out its operations in North America.
Under the terms of the LOI, the company has 60 days to reach a definitive agreement on the acquisition.
VPN Technologies’ President and CEO, Paul Dickson, confidently stated that the company will do so on schedule.
“We held a number of discussions with the owners leading up to executing the LOI. The company has every opportunity to close this acquisition, subject to a positive due diligence outcome,” he said.
In 2018, the VPN industry had annual sales of about $26 billion. Forecasts suggest that the industry will experience significant growth, rising to over $70 billion in the next five years.
Before the market opens, VPN Technologies (VPN) is trading at six cents per share.