In what could be the biggest news in a long time in the VPN realm, it has been confirmed that the parent company of NordVPN, Nord Security, is merging with Surfshark. The shared goal is to create “the largest internet security and privacy powerhouse.”
NordVPN‘s blog (Nord Security) and Surfshark‘s blog both confirm that they are joining forces. The two companies, recognized as leaders in the VPN space, just finalized the merger agreement that has been ongoing since mid-2021.
Details About the Merger Agreement
“You read it right – Surfshark is joining forces with Nord Security,” stated Surfshark. This “will reveal technical knowledge-sharing opportunities and enable more focused market diversification” added NordVPN.
Although Surfshark remarked that their intentions in the VPN realm do overlap with NordVPN, they stated that their products “are still different and will remain distinct.” NordVPN said that they are impressed by how fast Surfshark has grown as well as their level of professionalism as a team.
The merger, which is supposed to “act like a springboard” towards other endeavors for both companies, is a tactical approach to reach mutual goals, sharing knowledge and enabling better market diversification while keeping operations independent.
Both companies emphasized that the merger will not affect how user data is processed per their privacy policies and terms of service.
Remarks From Nord Security and Surfshark
Nord Security co-founder Tom Okman remarked that the “increasing complexity of cybersecurity and digital privacy is a growing challenge worldwide,” meaning that consumers and businesses now require “radical simplification,” and “ease of access,” which will be part of the solutions the new merger will bring.
Surfshark founder and CEO Vytaukas Kaziukonis remarked that the industry’s maturity is marked by “Consolidations in the global consumer cybersecurity market,” and that growing customer requirements need to be met in various digital security dimensions.
The Creation of a Leading Online Security Company
According to Tesonet Group, a revolutionary leader in online security is about to surface. Tesonet Group is an IT investor and project creator “helping to develop world-renowned products every single day and turning them into self-sustainable businesses” in over 80 countries.
Roughly translated from Lithuanian daily business newspaper “Verslo žinios“, Tesonet Group revealed that Surfshark and Nord Security will merge into a holding company named “Cyberspace” to create a new leader in the online security market. Other sources say Cyberspace will be located in the Netherlands.
The newspaper article says there is speculation that the new company will hold an IPO (Initial Public Offering) option. This was recently mentioned by Surfshark’s CEO Vytautas Kaziukonis and potentially opens future investment opportunities for Cyberspace.
Clash of online security superheroes: Kape Technologies vs Cyberspace
Recent strategic business diversifications like this merger and the Kape Technologies acquisition that made waves in 2021 — when Kape acquired CyberGhost, PIA, and ExpressVPN —are indicative of the competitive market going forward. It can be said that the newly merged Nord Security and Surfshark holding will probably stand stronger against the superpower holding Kape.
Tesonet, Nord Security, and Surfshark Have Shared History
Not much was known of these connections pre-merger. However, it is now public knowledge that Surfshark and Nord Security were both part of the Tesonet Group’s accelerator and business incubator processes in their development phase.
It seems that Nord Security has since taken a more independent path, while Surfshark and Tesonet continue to maintain friendly relations and exchange information like market insights.
Corporate connections in the VPN world are usually kept low-profile and cloaked in intrigue as diversification and consolidations roll on. Most of the VPN market is now controlled by Kape, Tesonet, and others like Ziff Davis. Now, it looks like Cyberspace is going to be the new kid on the block.