That’s 33 percent above AVG’s closing price Wednesday on the New York Stock Exchange.
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Both companies are industry pioneers founded in the Czech Republic in the late 1980s and early 1990s, and later expanded internationally in the 2000s.
Avast Software agreed to buy AVG Technologies NV for $1.3 billion in cash to add software to protect mobile phones from malware as it aims to tap into the growing number of physical devices connected to the internet. In mobile, our combined 160 million mobile users will be used to improve protection as well as to provide an important stepping stone into the Internet of things.
Avast said Thursday the deal is meant to “gain scale, technological depth and geographical breadth”. It has emerged as one of the leading online security companies, and is reported to control more than a fifth of the global antivirus software market.
Security software giant Avast Software has acquired rival AVG Technologies.
“We believe that joining forces with Avast, a private company with significant resources, fully supports our growth objectives and represents the best interests of our stockholders”, said Gary Kovacs, chief executive officer, AVG. It offers a range of related services too, including AVG Cleaner for Android and Mac. Avast will finance the deal with existing cash reserves and debt financing from third party lenders. In addition, Avast has contributed $150 million in equity investment to fund the transaction.
“If the AVG shareholders do accept, following the various governmental regulators approvals, AVG will become part of Avast and we will jointly work on a great future together”, Steckler wrote in a blog post.
You can find out more details about the deal between Avast and AVG at the link below.
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Avast expects the transaction to close between September and October 2016. Jefferies International Limited and Morgan Stanley & Co.
