tech2 News StaffJul 07, 2016 18:45:54 IST
The deal has been approved by the management and supervisory boards of Avast and AVG and involves Avast buying out AVG’s outstanding ordinary shares at $25 each. The total value of the deal is around $1.3 billion. AVG is a publicly traded company so the deal will first have to be approved by shareholders and Avast expect it to be concluded by September or October this year.
The offer price reportedly represents a 32 percent premium over the average volume weighted price over the past 6 months.
Both companies were established in Czechoslovakia sometime in the early 1990s. Avast has had a better reputation in security circles and has consistently maintained itself among the top ranks of AV-Test rankings. AVG has not fared as well and has also been mired in controversy with regards to its browser plugins. It’s still a popular program however, which is probably what prompted Avast to consider a buyout.
Avast claims to be acquiring AVG to “gain scale, technological depth, and geographical breadth so that the new organization can be in a position to take advantage of emerging growth opportunities in internet security as well as organizational efficiencies.”
"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, chief executive officer of Avast Software.
Avast claims that the deal will expand their reach to 400 million end-points, over half of which represent smartphones. The larger footprint more data for Avast to work with, more malware to discover and therefore, better software and security.
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