Israeli online distribution and digital product company Crossrider Ltd. (AIM:CROS), controlled by Teddy Sagi, has announced the acquisition of German cyber security company CyberGhost for up to €9.1 million. Crossrider will pay an initial consideration of €3.2 million in cash, €3 million in shares and an EBITDA based earn-out payment of up to €3 million.
CyberGhost is a cyber security SaaS provider with a focus on the provision of virtual private network solutions. Last year CyberGhost generated EBITDA of $1m and significant levels of recurring revenues from subscribers.
Crossrider CEO Ido Erlichman said, "Crossrider's expansion in the cyber security arena is strategically very significant given its scale and the growth opportunity it presents. 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.”
Crossrider also announced final results for 2016 with revenue of $56.5 million, down from $84.6 million in 2015. The company said the decrease was mainly due to the expected decline and decision to cease investment in the web apps platform.
Erlichman said, “Having joined Crossrider in May, I'm delighted to report significant progress across our business and that we are on track in the execution of our strategic plan. We have refocused Crossrider's core operating activities and are now well positioned to grow a world-class digital distribution platform both organically and through our stated acquisition ambitions.”
Published by Globes [online], Israel business news - www.globes-online.com - on March 14, 2017
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