Family Zone plans another deal

02/05/2022 - 16:09

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Local tech enterprise Family Zone is chasing $42 million to acquire a fellow parental control and digital wellbeing business based in Barcelona.

Family Zone plans another deal
Family Zone managing director Tim Levy. Photo: Gabriel Olivera

Local tech enterprise Family Zone is chasing $42 million to acquire a fellow parental control and digital wellbeing business based in Barcelona.

ASX-listed Family Zone entered a trading halt this morning after revealing plans to purchase all shares in Qustodio and its Spanish subsidiaries for $US52 million ($A73.7 million) in cash and shares.

Just over half of the consideration will be paid via an upfront consideration of cash, vendor finance and Family Zone shares, subject to certain milestones.

The majority of the acquisition will be funded by a $42 million capital raise, also launched today.

Founded by three cybersecurity tech entrepenuers in 2012, Qustodio has roughly 270,000 paying customers for its parental control provider app, contributing to approximately $16 million in annual recurring revenue. 

Subject to Spanish Foreign Direct Investment approval, completion of the capital raise and shareholder approval, Qustodio will mark Family Zone’s seventh acquisition.

Last year, it raised $146 million to acquire its UK-based competitor Smoothwall for $142 million.

Previous acquisitions include Sonar, Linewize, ySafe, NetRef and Cipafilter. 

Family Zone managing director Tim Levy said the deal would be seen as a turning point in online safety. 

“Qustodio and Family Zone share the view of a better world where schools, parents and children can work together to create safe and enriching online experiences," Mr Levy said in a statement. 

"Our combination will represent the creation of a truly global leader in online safety with unmatched scale and capabilities."

Azure Capital is acting as corporate adviser to the transaction and Thomson Geer as legal.

Prior to the trading halt, Family Zone shares last traded at 41 cents.

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