Avast is planning to acquire AVG for $1.3 billion. When the acquisition is completed, antivirus products of both companies will be merged. Confirming the deal yesterday, Avast which is based in Prague, Czech Republic, said it has already reached an agreement that will see AVG bought out in an all-cash deal, made possible through cash on hand and debt financing.
The transaction is expected to close between September 15 and October 15 this year, depending on the results of regulatory reviews.
Avast is offering $25 per share to AVG investors, a premium of over 30 percent on current trading prices. Avast stated that said the deal would give the antivirus provider a combined network of over 400 million endpoints, 160 million of which are mobile.
These will “act as de facto sensors, providing information about malware to help detect and neutralize new threats as soon as they appear,” according to the firm.
Using this data, Avast will then be able to boost its security and privacy products, and emerging markets such as security for internet of things devices are of particular interest.
“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, CEO of AVG, in a statement.
“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 buyout has already been approved by the management of Avast and supervisory boards, and AVG’s boards has recommended that AVG shareholders accept the deal.
