Avast Will Buy Rival Security Company AVG for $1.3 Billion
Article by George Norman
On 07 Jul 2016
Great news for people who frequently confuse Avast and AVG: the two companies are going to become one.

Avast just announced that it entered an agreement to purchase AVG for $25.00 per share in cash, which amounts to about $1.3 billion (with a B).


It makes sense for Avast and AVG to become one

Avast and AVG are very much alike. They were both founded in the late 1980s in the Czech Republic, they’re both dedicated to fighting viruses and malware, they both have free tools to offer, and they both have AV in their name.

So when you have two companies that are so much alike, it makes sense for them to unite, right? Well, that’s how Avast CEO Vincent Steckler is spinning it anyway. "These companies are so similar that it is only natural that they be combined and that is what we are now planning on doing,” he said.

What does the other side have to say? AVG CEO Gary Kovacs has nothing but good words to say about this acquisition. And more to the point...

"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 Kovacs. "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. 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."

Buying AVG is expensive, but it’s a good thing for Avast

$1.3 billion is a lot of money. But it’s all worth it, as it’s a very good thing for Avast. By acquiring AVG, Avast will have a network of more than 400 million endpoints. By acquiring AVG, Avast will have more than 250 million PC and Mac users and some 160 million mobile users. By acquiring AVG, Avast will gain scale, technological depth and geographical breadth.

"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 Steckler. "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."

Only the shareholders can deny this deal now

Avast’s Management and Supervisory Board unanimously approved the acquisition of AVG. AVG’s Management and Supervisory board approved it as well. This means that it’s up to all the AVG shareholders to make up their mind if they want to go ahead with the acquisition or not. Since AVG’s board supports it and recommends the offer of acceptance, it’s highly unlikely that the shareholders will deny it.

Avast’s offer to acquire AVG will be subject to certain shareholder approvals, the receipt of regulatory clearances, the tender of at least 95% of the outstanding ordinary shares of AVG or, if AVG shareholders approve the asset sale contemplated in the purchase agreement, the tender of at least 80% of the outstanding ordinary shares of AVG, and other customary closing conditions.

Long story short, it will take a few months for the acquisition to go through.

UPDATE, August 23, 2016

AVG's shareholders accepted the acquisition offer.

UPDATE, September 30, 2016

The acquisition has gone through. Avast and AVG will operate as a single company starting Monday, October 3, 2016.

Tags: Avast, AVG, security, acquisition, money
About the author: George Norman
George is a news editor.
You can follow him on Google+, Facebook or Twitter

I Hope you LIKE this blog post! Thank you!
What do YOU have to say about this
blog comments powered by Disqus
Popular News
By George Norman on 17 Aug 2017
With the blockbuster movie season upon us, Sony decided to celebrate the occasion with a sale: the Attack of the Blockbusters Sale that offers discounts of up to 50% (60% if you’re a PlayStation Plus member) on a ton of PS4 video games.
By George Norman on 17 Aug 2017
Samsung’s new T5 portable solid-state drive (PSSD) uses the latest 64-layer V-NAND technology, offers between 250GB and 2TB of storage capacity, has a lightweight and shock-resistant design that’s smaller than the average business card, and delivers industry-leading transfer speeds of up to 540 MB/s.
Related News
Sponsored Links
Hot Software Updates
Top Downloads
Become A Fan!
Link To Us!
Avast Will Buy Rival Security Company AVG for $1.3 Billion
HTML Linking Code