Family Zone (ASX:FZO) to raise funds for acquisition of Qustodio

• Family Zone Cyber Safety (FZO) enters a trading halt, ahead of a $42 million capital raise to fund its acquisition of Qustodio
• Founded in 2012, Qustodio is a parent controls company, which operates in nine language across more than 100 countries
• The acquisition will cost US$52 million (A$73.8 million), which will be paid in a combination of cash, vendor finance, and shares
• Family Zone is hoping to use the acquisition to cross-sell products and expand its global footprint
• Shares in the company last traded at 41 cents each

Family Zone Cyber Safety (FZO) has entered a trading a halt, ahead of a capital raise to fund its acquisition of Qustodio.

Founded in 2012, Qustodio is a parent controls company, which operates in nine languages across more than 100 countries. It generates about $16 million in annual recurring revenue.

The acquisition will cost US$52 million (A$73.8 million), which will be paid in a combination of cash, vendor finance, and shares.

An upfront payment of 52 per cent will need to be made, with the final 48 per cent to be paid upon the achievement of subscription revenue or EBITDA targets.

The transaction is subject to Spanish Foreign Direct Investment approval as well as the completion of the capital raising.

Family Zone is hoping to use the acquisition to cross-sell products and expand its global footprint.

“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,” Co-Founder and Chief Executive Officer Eduardo Cruz said.

“This shared vision has led us to unite forces and bring game changing unified approaches in online safety to market.”

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

Shares in the company last traded at 41 cents each.