Both companies were founded in the Czech Republic and expanded globally with AVG going public in 2012. With this deal Avast will purchase AVG, now based in The Netherlands, at $25 per share. Avast has received financing of $1.6 billion from Credit Suisse Securities, Jefferies and UBS Investment Bank to complete the deal.
Avast said in statement that the acquisition will help it scale ahead of growing challenges and opportunities in the cybersecurity industry both for consumers and business, particularly with the burgeoning internet of things. The combined company will have more than 400 million users.
“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,” said Vince Steckler, CEO of Avast.
With this acquisition, AVG will be able to accelerate its own investments in growing markets, according to Gary Kovacs, CEO of AVG.
“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.”
AVG has made a number of acquisitions itself over the last few years including UK-based Privax, the makers of HideMyAss VPN, in May of last year for $60 million and Israeli photo gallery app MyRoll in November for an undisclosed sum.