It’s been just a month after Symantec corp. acquired Blue Coat Systems for $4.65 billion, internet security world is ready to host another major acquisition. It’s Czech antivirus software maker, Avast acquires AVG technologies for $1.3 billion.
The related announcement was on Thursday, at Prague wherein Avast officials said, the acquisition will be in all-cash deal. As per the combined statement from the companies, Avast will offer $25 share in cash to AVG investors. For Avast, the deal is to “gain scale, technological depth and geographical breadth”. Currently, there’re more than 400 million users in these two companies’ combined, 160 million of those are mobile users.
Both the companies have roots on old Czechoslovakia. Founded in 1988, Avast emerged as one of the top internet security firms controlling 1/5th global antivirus software market. AVG’s story wasn’t too different – by delivering elite class desktop and mobile security tools, it also became one of the trustable names in security software industry. From February 2014, Avast has been financially backed by private-equity firm CVC Capital Partners. The takeover can help the Czech company to get more opportunities in internet safety related areas, and growing sectors like Internet of Things.
Since, AVG is a publicly traded firm registered in NSE, its shareholders have to approve the deal. Anyway, Avast says the deal is expected to complete before October 15 this year.
According to a report by Gartner Inc., worldwide cyber security expenditure can increase up to $91.6 this year, 10% increase from the previous year. As new generation cyber threats arrive, larger players have to change the face of their product lines, by finding new markets and by polishing existing products. These companies have to find ways to consolidate and acquire new technologies to survive in the market. Avast’s move won’t be focused towards anything else.
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