Daily Management Review

Avast buys its competitor AVG for $ 1.3 billion


07/07/2016


Avast Software company buys his Dutch rival AVG Technologies for $ 1.3 billion in cash to expand its presence in emerging markets, reports Reuters.



Avast buys its competitor AVG for $ 1.3 billion
Amount of the transaction is defined to be $ 1.3 billion, or $ 25 per AVG’s share, which is 33% more than value of the company’s securities at closure of the New York stock exchange on Wednesday.

The transaction will be paid in cash and credit money. Jefferies, Credit Suisse and UBS provided Avast with a loan of $ 1.7 billion in the deal scheduled to close in September or October this year.

"We believe that combination of Avast with a private company with significant resources is in line with our objectives of growth and meets interests of shareholders", - said AVG CEO Gary Kovacs.

Both companies has operated in the cyber security market for more than 15 years, independently of each other. Both of them were founded in 1991 in various cities in the Czech Republic. Vincent Steckler, Avast Software's CEO, admits "they were often confused with each other". Avast is still a non-public company, valued at $ 1 billion after a round of funding from CVC Capital Partners. AVG shares are traded on the New York Stock Exchange.

After the transaction, the total number of user base is around 400 million units, of which 160 million fall on smartphones, tablets and other mobile devices. Currently, audience of Avast Software Product numbers about 230 million users.

According to Avast, the acquisition of AVG will help the company strengthen its position in the field of security systems, Internet of things (IoT), development of which its current goal. The transaction will take "several months."

This step was unanimously approved by the company’s board of directors and supervisory board, which recommend AVG shareholders to support the deal.

Earlier in June, it became known that antivirus software developer Symantec agreed to buy Blue Coat Systems company for $ 4.65 billion. Blue Coat protects corporate Internet gateway against hacker attacks. This service will complement products range of Symantec, which produces the famous Norton Antivirus. It is reported that amount of the transaction is approximately equal to the company’s upcoming evaluation, made by Blue Coat analysts in preparation for the company’s IPO. However, the merger with Symantec cancels the IPO.

Symantec itself is confident that the acquisition of Blue Coat will allow the company to strengthen its leading position in the information security and computer security market. Revenue of the combined company is projected at $ 4.4 billion at the end of 2016, of which 62% are expected to come from the corporate segment. The merger will strengthen Symantec’s stance against Palo Alto Networks, FireEye and Check Point Software Technologies.

source: reuters.com






Science & Technology

Five loudest data leaks

Airbus announces Moon exploration competition

Former Head Of Google China Thinks Funding In AI Should Be Doubled By US

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

Fuchsia will kill Android by 2023: Top 5 facts about the new OS

New Study Finds Goats Interact More With Happy People

More than 32 thousand "smart" houses under threat of hacker attack

Internet addiction and children: Global plague

Apple takes up to develop Apple Watch for health monitoring

World Politics

World & Politics

Transparency International: Europe should stop selling citizenships

Turkey: We are not going to discuss borrowing from IMF anymore

Trump in your mobile phone: US is going to test Presidential Alert system

European automakers warn of consequences of tight emission controls

IATA: EU-UK flights can be cancelled due to Brexit disagreements

Ex-Brexit Minister Said A ‘Reset’ Is Needed For Brexit Talks

10 countries with the best healthcare systems

Foreign Experts To Be Allowed By North Korea For Permanent Destruction Of Missile Sites