Avast acquires AVG for $1.3b to gain scale and build IoT security solutions
Avast has announced that it is set to acquire its rival antivirus maker AVG for $1.3 billion. The new acquisition is aimed to help Avast gain scale as well as technology depth and geographical reach.
Under the terms of the deal, Avast will purchase all the outstanding ordinary shares of AVG for $25 per share in cash. The development will combine the two Czech Republic-based entities to counter McAfee and Norton.
“We believe that joining forces with Avast, a private company with significant resources, fully supports our growth objectives and represents the best interests of our stockholders,” said Gary Kovacs, chief executive officer, AVG. “Our new scale will allow us to accelerate investments in growing markets and continue to focus on providing comprehensive and simple-to-use solutions for consumers and businesses alike.”
Avast will not only utilise the existing security product line of AVG but will also debut in the emerging market of Internet of Things (IoT) through advanced technologies.
“Combining the strengths of two great tech companies, both founded in the Czech Republic and with a common culture and mission, will put us in a great position to take advantage of the new opportunities ahead, such as security for the enormous growth in IoT,” Avast CEO Vince Steckler said in a statement.
The combine user-mix of Avast and AVG will bring a massive network of more than 400 million endpoints, of which 160 million are mobile. Moreover, the transaction is expected to close sometime between September 15 and October 15 this year — depending on the timing of the regulatory review.