Family Zone Cyber Safety

US$52m acquisition of Qustodio

May 2022

In May 2022 Family Zone Cyber Safety, an ASX-listed business focussing on providing cyber safety solutions to schools, students and families, announced the acquisition of Qustodio for US$52 million, representing a revenue multiple of c. 4.5x. Qustodio is a global leader in parental controls supporting c. 270,000 paid accounts with worldwide distribution and the ability to support 9 languages.

The combined Family Zone and Qustodio business will service approximately 11m students globally to generate annual recurring revenues of c. A$70m with forecast growth in excess of 30% p.a.. The acquisition significantly expands Family Zone’s capability and global footprint.

52% of the transaction consideration is payable upfront, in a combination of cash, vendor finance and Family Zone shares. Family Zone funded the upfront cash component through a fully underwritten placement of A$42m with the balance of capital raised being used to support continued growth of the combined group.

Azure acted as financial adviser to Family Zone on the acquisition including valuation, structuring, strategic advice and negotiation of relevant transaction agreements.