Prague-based security software specialist
, Avast, that develops security solutions for personal computers, smartphones and tablets has announced to acquire, AVG
for $1.3 billion in an all cash deal (priced at $25 per share).
The company has not revealed whether it will rebrand AVG’s services as its own or allow AVG to run its business under its existing banner. In a company blog post
, Vince Steckler, CEO, Avast, stated, “The process does not allow us to talk a lot about how we would operate after combining.”
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 Internet of Things (IoT).
Based out of Amsterdam, AVG claims to have agreed to the merger to combine forces, and aid Avast, strengthen its growth in the security space. The joint efforts will bring Avast market expansion and technological advancements, that will cater to a network of more than 400 million endpoints, of which 160 million are mobile, claims the company.
According to Avast, customers can benefit consumer grade advanced security offerings and information about malware to help detect and neutralize new threats as soon as they appear. Specially, in the world of growing IoT security threat with personal security and privacy products.
Gary Kovacs, chief executive officer, AVG, said:
We believe that joining forces with Avast, a private company with significant resources. 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. As the definition of online security continues to shift from being device-centric, to being concerned with devices, data and people, we believe the combined company, with the strengthened value proposition, will emerge as a leader in this growing market.
Founded in 1988, Avast claims to have acquired 5 companies, while AVG stands fifth in the timeline. The last buyout was in July, 2015 when Avast purchased
Remotium for an undisclosed amount.