Kape Technologies' (LON:KAPE) acquisition of Intego for $16m looks a good fit. It broadens Kape’s portfolio by adding anti-malware software and significantly strengthening its Mac offering. We see good scope for sales synergies through cross-selling and leveraging Kape’s customer acquisition platform. The deal boosts our FY18 and FY19 EPS by 2% and 9% respectively, while synergies should strengthen beyond our forecast period.
Strengthening the portfolio and development team
Intego provides a suite of products including anti-malware, firewall and parental control products to 150,000 Mac users, all on a subscription basis, significantly strengthening Kape’s position in the Mac ecosystem. The anti-malware product in particular, fills a big gap in Kape’s portfolio, while the Intego engineering team will also strengthen the company’s product development capability.
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