Avast Acquires AVG for $1.3 billion in All Cash Deal
Avast is all set to acquire AVG for $1.3 billion in an all-cash deal in order to expose more market and increase its user base to 400 million, which includes 160 million mobile users using mobile security products. Currently, Avast has a user base of 230 million.
Avast Softwares is backed by CVC Capital Partners a private-equity firm.
Avast shall begin a tender offer for Amsterdam-based AVG at $25 a share in cash. That’s 33 percent above AVG’s closing price Wednesday on the New York Stock Exchange.
— Official Statment by the both companies
This acquisition by Avast of AVG shall hep Avast in creating superior security services for small and medium businesses. While there still a question mark whether Avast shall continue to sell all AVG products under its AVG’s name or plan to sell it under its own banner.
A recently published report by OPSWAT highlighted that Avast had a 15% share of the global antivirus market while AVG had 5%, and Microsoft dominating the market with 15.9% share.
It clearly means that, with this acquisition, Avast can be the market leader and place Microsoft under it and make itself the largest antivirus company in the world.
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.
— Vince Steckler ( CEO, Avast)
The acquisition would allow us to accelerate investments in growing markets and continue to focus on providing simple-to-use solutions for consumers and businesses.
— Gary Kovacs ( CEO, AVG)
Both Avast and AVG are based in the Czech Republic, with AVG headquartered in Amsterdam and Avast in Prague.