Avast Software has recently announced that it will acquire rival AVG Technologies for a price of $1.3 billion, as a move to further expand its business and reach other markets.
Avast and AVG, which are both founded in the Czech Republic, have been known for a long time as close rivals when it comes to internet security, both providing antivirus software for free, as well as offering paid versions which offer more features. Both companies have also expanded their services, offering security products for mobile devices.
Avast Software is offering $25 a share in cash, for a total of $1.3 billion. The transaction has already been unanimously approved by the Management and Supervisory Board of Avast, as well as the boards of AVG. However, the acquisition is still awaiting approval from the shareholders of AVG Technologies.
"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 Software. "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 IoT."
Gary Kovacs, CEO of AVG Technologies offered a few words about the acquisition: "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," he said. "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."
Avast foresees that the acquisition will help the company "gain scale, technological and geographical breadth and depth" to be able to take advantage of emerging opportunities when it comes to internet security.