Consolidation is accelerating in the VPN market. After the takeover of ExpressVPN by Kape Technologies, it is now the turn of VPN providers Surfshark and Nord Security to announce their merger. The transaction, the details of which have not been disclosed, is part of a number of consolidations in the VPN market, much of which is already controlled by Kape Technologies, Tesonet and Ziff. Davis.
If the terms of the merger have not been disclosed, the two companies explain that they spent months negotiating before making this announcement. The two companies will continue to operate as separate entities “based on separate infrastructures and different product development plans”.
In a statement, Surfshark Founder and CEO Vytautas Kaziukonis defends the worrying consolidation in the VPN market, saying it indicates “the maturity of the industry.”
“Consolidations in the global consumer cybersecurity market indicate the maturity of the industry,” said the leader. “They also bring new competitive challenges. Nord Security and Surfshark, by joining forces, will set the stage for scaling in different dimensions of digital security, which is necessary to meet the growing demands of our customers. »
Nothing changes for users?
The two companies want to reassure their users that they never intended to “be just a VPN” and that they will both continue to offer different products despite the overlaps between the tools that they sell. “Nothing changes regarding our brands, our infrastructure, company management, employees and product development. The idea behind this agreement is to align to achieve mutual goals while maintaining the autonomy of our operations”, explain the staffs of the two companies.
“This strategic business move will serve as a springboard to faster development and innovation, while maintaining the uniqueness of the two brands that customers have come to appreciate over many years. For Tom Okman, co-founder of Nord Security, the parent company of NordVPN, this operation is justified by the need for a “radical” simplification of the VPN industry, in order to make access to the services offered easier for consumers and businesses. Neither company says they are changing their terms of service or privacy policy.
Still, this merger caught the eye of market watchers, as Surfshark was developed with the help of Tesonet, the same Lithuanian business incubator that helped NordVPN take off in its early days. The companies had initially denied any connection before the announcement of the merger.
Last September, Kape Technologies bought ExpressVPN for $936 million. The holding was not at its first coup on the VPN market: it had already offered the companies ZenMate and Cyberghost, after specializing in scareware under its former label Crossrider.