Avast snaps up rival antivirus firm AVG in $1.3 billion deal
Avast has announced plans to acquire AVG in a $1.3 billion deal which will combine the antivirus products of both companies.
On Thursday, the Prague, Czech Republic-based company said an agreement has been reached which will see AVG bought out for $1.3 billion in an all-cash deal, made possible through cash on hand and debt financing.
Avast will offer $25 per share to AVG investors, a premium of over 30 percent on current trading prices.
In a press release, Avast said the deal would give the antivirus provider a combined network of over 400 million endpoints, 160 million of which are mobile. These will "act as de facto sensors, providing information about malware to help detect and neutralize new threats as soon as they appear," according to the firm.
Using this data, Avast will then be able to boost its security and privacy products, and emerging markets such as security for Internet of Things (IoT) devices are of particular interest.
Gary Kovacs, CEO of AVG commented:
"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.
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."
The buyout has been approved by the Avast management and supervisory boards, and AVG's boards have recommended that AVG shareholders accept the deal.
The transaction is expected to close between September 15, and October 15 this year, depending on the results of regulatory reviews.