Software security giant Avast has announced acquiring rival company AVG for $1.3 billion in an all-cash deal. Avast introduced its consumer-grade antivirus software and has over 230 million users worldwide who will pay $25 per outstanding ordinary share of AVG.
Both Avast and AVG were founded in the Czech Republic and expanded internationally in 2000, and have become major players in the software security industry.
AVG has become one of the biggest brands in desktop and mobile security apps and has around 170 million users. The Amsterdam-headquartered company offers a high range of related services with AVG Cleaner for Android and Mac.
The acquisitions will make Avast the largest software security company in the world with combined 400 million users, and near about 160 million users already use their mobile security products. The purchase agreement will allow Avast to expand its business transaction across more markets worldwide, and it expects to close the transaction by the end of October this year.
Since AVG has a strong user base will help Avast to acquire the technical depth and geographical breadth of the company and take advantage of emerging growth in the internet security industry. The buyout will also help Avast to access data from more devices and serve the joint company a bigger pool of data on malware. That means it should be better positioned in software security to offer better products for its large consumer base.