NordVPN and Surfshark, two well-known VPN providers, are merging together to form one company.
NordVPN’s parent company, Nord Security, announced the deal on Tuesday. The new company is called Cyberspace, which has been registered in The Netherlands.
However, both NordVPN and Surfshark said that they will continue operating independently and “rely on separate infrastructure and product roadmaps,” according to the announcement. This means that users from both VPN providers still won’t be sharing the same servers. Additionally, NordVPN will remain incorporated in Panama.
“This is not an acquisition, Nord Security is not buying Surfshark, this is a merger. However, further details of the transaction are not disclosed as both companies are privately owned entities,” Nord Security added in a media statement.
However, the two companies did say “the merger will open new technical knowledge-sharing opportunities and enable more focused market diversification.”
So, in this case, the providers may eventually use and adapt the same technologies.
“The idea behind the deal is to streamline resources towards common goals while preserving the autonomy of both companies,” the announcement said. “Founders highlight that this strategic business move will serve as a springboard towards more rapid development and innovation while maintaining the uniqueness of both brands that customers learned to appreciate over many years.”
This move comes as the VPN industry has faced increased consolidation. For instance, Ziff Davis, which owns PCMag, bought IPVanish and StrongVPN in 2019.
“Consolidations in the global consumer cybersecurity market indicate the industry’s maturity. They also bring new competitive challenges,” Surfshark Founder Vytautas Kaziukonis said.
The two companies first started exploring a merger mid-2021 before finalizing the agreement on Tuesday. Before the announcement, however, Nord Security and Surfshark minimized their connections after multiple reports came out about how the VPN providers were developed under the same Lithuanian business incubator Tesonet, sparking rumors that the two companies might merge.