Avast buys AVG for £1 billion

Security firms Avast and AVG have announced an acquisition agreement on Thursday, which will see Avast buying AVG for $1.3 billion (£1bn), or $25 per share, in cash.

Avast has gotten a credit of $1.685 billion from Credit Suisse Securities, Jefferies and UBS Investment Bank, and will contribute to the acquisition with its own $150 million in equity investment.

Both Management Boards and Supervisory Boards of Avast and AVG have approved and supported the transaction.

By devouring AVG, Avast will be securing more than 400 million endpoints, of which 160 million are mobile. The company said that by having access to such a large amount of data, it will be able to react to threats faster and bring more security.

“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, chief executive officer 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.”

Both Avast and AVG are industry pioneers, which were founded in the Czech Republic some 20, 30 years ago. They both expanded internationally in the new millennium, and will now combine to make Avast grow even more.