Avast to buy antivirus rival AVG for $1.3 billion

Antivirus firm Avast has announced a deal to buy rival company AVG for $1.3 billion (£1bn).

The transaction is cash offer for AVG’s shares at a price of $25 per share. Avast will finance the deal with existing cash reserves and debt financing from third party lenders.

The company said the purchase would help it “gain scale, technological depth and geographical breadth”. The sale price represents a 32 per cent premium on AVG’s average price per share over the last six months.

At the end of 2015, Avast had a 15 per cent share of the global antivirus market, with AVG on 5 per cent, according to data from Opswat.

The merger means that Avast could overtake current market leaders Microsoft, who have a market share of 15.9 percent, making it the largest antivirus company in the world.

“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 Avast CEO Vince Steckler in a press release. “Combining the strengths of two great tech companies will put us in a great position to take advantage of the new opportunities ahead, such as security for the enormous growth in IoT.”

AVG CEO Gary Kovacs said that the acquisition would allow them to “accelerate investments in growing markets” and “continue to focus on providing simple-to-use solutions for consumers and businesses”.

Following the acquisition, Avast will have a network of more than “400 million endpoints” acting as sensors to provide information about malware. The company says this will allow it to create more “technically advanced security products”.

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7 July 2016 | 7:57 am – Source: wired.co.uk

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