Family Zone to become a global cyber safety leader with $74m Qustodio deal
Australia’s Family Zone will become a global leader in cyber safety after signing a $74m deal to buy one of the world’s biggest parental control software firms.
Business
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Australian tech firm Family Zone Cyber Safety will pay $US52m ($73.8m) to acquire Qustodio, a global leader in parental control software.
Based in Spain, Qustodio currently provides parental control services in over 100 countries in nine different languages and has an annual recurring revenue of $16m.
Family Zone managing director Tim Levy said that this acquisition makes Perth-based Family Zone the only true global provider of family cyber safety and it is a big step forward.
“This truly makes us the only global online safety provider and gives us a full hand in advancement,” he said. “It also gives us access to incredible engineers in Spain, multi-level support, global relationships with telco partners, and puts us at the top of the global online safety providers.”
Merging Qustodio and Family Zone together is expected to create $70m in annual recurring revenue and a growth rate of 30 per cent per annum.
Family Zone will pay 52 per cent of the purchase price in cash, vendor finance and in Family Zone shares, while the remaining 48 per cent will be payable in Family Zone shares depending on whether performance milestones are met to a satisfactory standard over a two-year period.
Family Zone currently delivers three types of cyber safety plans to families around the world and is a trusted provider for cyber safety in over 20,000 schools across the globe.
Mr Levy says the acquisition will give the company plenty of options for expansion.
“We believe it will be massively accretive for our shareholders and it offers us options to accelerate in our English speaking and enter non-English speaking markets, making us the top-performing and most well-known online safety organisation in the globe, and that’s our goal,” he said.
It is expected that the acquisition should see Family Zone reach 23,800 schools, 11 million students, and 340,000 parental accounts while operating in nine languages and providing 510 employment opportunities.
The deal is conditional upon a number of factors including the completion of a $42m capital raising launched Family Zone on Monday, Spanish Foreign Direct Investment approval and Family Zone shareholder approval.
Family Zone shares last traded on the ASX at 41c.
Originally published as Family Zone to become a global cyber safety leader with $74m Qustodio deal
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