Security software company Avast has announced that it is buying rival AVG Technologies for $1.3 billion in an all-cash deal.
The transaction has already been approved by the Management and Supervisory Board of both Avast and AVG. This transaction, Avast say will allow them to expand its business worldwide across more markets. Both firms trace their roots in the Czech Republic and have a user base of about 400 million, of which 160 million are mobile. Avast adds that the increase in scale will enable them to create more advanced personal security and privacy products.
“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,” Vince Steckler, chief executive officer of Avast Software said. “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, chief executive officer, AVG has on the other hand expressed his satisfaction in the deal saying. “Our new scale will allow us to accelerate investments in growing markets and continue to focus on providing comprehensive and simple-to-use solutions for consumers and businesses alike.’’
The transaction is expected to close sometime between September 15, and October 15, 2016, depending on the timing of regulatory review.