Avast, the maker of Avast antivirus and AVG Technologies, the security software applications developer have entered into a purchase agreement in which Avast will purchase shares of AVG for $25 per share in cash, for a total consideration of approximately $1.3 billion.
Both companies were founded in the Czech Republic in late 1980s and early 1990s. The companies expanded internationally in the 2000s and will now be combining their strengths to position Avast for continued growth in the security industry.
Gary Kovacs, CEO of AVG said :
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.
Avast says that the acquisition is its attempt to gain scale, technological depth and geographical breadth so that they can be in a position to take advantage of emerging growth opportunities in Internet Security.
Post acquisition, Avast will have a network of more than 400 million endpoints, who will continuously provide information about malware to help detect and neutralize new threats as soon as they appear. This increase in scale will enable Avast to create more technically advanced personal security and privacy products.
Vince Steckler, CEO of Avast Software said :
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.
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.