Avast and AVG have long stood as two of the most prominent anti-virus firms on the market, having both been founded in the Czech Republic over two decades ago.
Now, the two have announced that Avast is acquiring AVG in a deal worth US$1.3-billion. Avast will buy AVG’s outstanding ordinary shares at US$25 a pop, representing a 33% premium over its 6 July closing price.
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“Avast is pursuing this acquisition to gain scale, technological depth and geographical breadth so that the new organisation can be in a position to take advantage of emerging growth opportunities in Internet Security as well as organisational efficiencies,” AVG said in a message to investors.
AVG said that the deal would also translate to a larger network of users and devices providing information about malware.
Why was the deal made?
“Combining Avast’s and AVG’s users, the organisation will have a network of more than 400 million endpoints, of which 160 million are mobile, that act as de facto sensors, providing information about malware to help detect and neutralise new threats as soon as they appear,” AVG explained.
“We are in a rapidly changing industry, and this acquisition gives us the breadth and technological depth to be the security provider of choice for our current and future customers,” said Vince Steckler, chief executive officer ofAvast Software.
“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.”
The management and supervisory boards of both companies have approved the deal, which is expected to close between 15 September and 15 October 2016.
