Avast is set to purchase all outstanding ordinary shares for $25.00 per share in cash, for a total consideration of approximately $1.3 billion.
Security software giant, Avast, has entered into an agreement to acquire business, mobile, and PC security software developer, AVG, offering to purchase all outstanding ordinary shares for $25.00 per share in cash, for a total consideration of approximately $1.3 billion.
Founded in Czech Republic in the late 1980s and 1990s respectively before expanding internationally a decade later during the 2000s, both technology pioneers will now combine their complementary strengths to position Avast for continued expansion across the security industry.
The takeover is aimed at gaining scale, technological depth, and geographical breadth so that the new organisation is in a position to take advantage of emerging growth opportunities in internet security and organisational efficiencies. The move also proves beneficial for the consumer.
With the acquisition, consumers will be afforded more advanced offerings in the core business alongside new innovations in emerging markets, such as security for IoT devices. Combining users from both sides, the company will have a network of more than 400 million endpoints.
Based on the aforementioned figure, 160 million are mobile that act as de facto sensors providing information about malware to help detect and neutralise threats as soon as they appear. The increase in scale enables the company to create more technically advanced personal security and privacy products.
The transaction has been unanimously approved by the Management Board and Supervisory Board of Avast. The Management Board and Supervisory Board of AVG approved and support the transaction and recommend the offer for acceptance to its shareholders.
“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,” said Vince Steckler, CEO of Avast Software.