In what is arguably the largest merger or acquisition in the history of the VPN industry, Nord Security and Surfshark have announced plans to merge. This comes only 72 hours after we reported about the close ties between the two companies.
Despite the lack of specific data, we believe the transaction will outperform Cape's $1 billion acquisition of ExpressVPN in September 2021. Surprisingly, Surfshark and NordVPN revealed that the deal marks the conclusion of a process that began in mid-2021, possibly prior to ExpressVPN. deal.
While NordVPN has been around for a decade, Surfshark's rise has been nothing short of spectacular, according to data from Google Trends, with the company quickly becoming one of the most popular VPN brands in the world. The two companies have said in separate statements that they will "continue to operate autonomously and rely on separate infrastructure and product roadmaps."
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In line with the common divide-and-conquer strategy used in the SaaS industry, the combined entity will operate multiple brands.
NordVPN, its premium VPN brand, AtlasVPN, its entry-level freemium VPN, NordLayer, its B2B network access security solution, NordLocker, an encrypted cloud storage solution, and NordPass, and advanced password managers through Nord Security.
Surfshark has over 200 employees and over one million paying users, while Nord Security has over 15 million users and 1000 employees. Almost every major VPN ranking includes both brands in the top three.
What's next then? Nord Security co-founder and Surfshark founder Tom Oakman, and Nord Security co-founder and Surfshark founder Vytas Kazioukonis, both declined to comment.
However, we'd be surprised if an IPO (or, at the very least, a private equity round) based on a multi-billion dollar valuation wasn't working, giving them the cash they need to buy more brands. Needed add more features.
2022: Year of Big VPN Consolidation
"Go big or go home," as the saying goes. It was only a matter of time before smaller companies rushed to consolidate their position after Google and Apple launched their own VPN/privacy solutions. J2Global (PCMAg's parent company), Kаpe, and now NordVPN have all joined in.
Expect more consolidation as the biggest players in the VPN industry make bets. Who will be the next victim? PureVPN isn't one of the most well-known VPN providers? ProtonVPN, a popular choice among those who value their privacy?
Here are three scenarios we won't discount:
Large VPN providers will begin to move to security brands and offer more features to compete toe-to-toe. The dispute between payment providers and mobile freemium providers will continue to grow. stand out against each other to offer more
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