Daily Management Review

Avast buys its competitor AVG for $ 1.3 billion


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

NASA’s Mars Mission To Make Use Of Cold War-Era Atomic Rockets

Israel Completes Mars Habitat Simulation Experiment

Just $24 Earned By Hackers From The Huge Cryptojacking Campaign Conducted Last Week

New Molecule That Quickly Fights Cancer Cells Identified By Swedish Scientists

The U.K.’s Health Sector To Integrate Israeli ‘Digital Health’ Technology

Cryptocurrency Mining Malware Infects Government Websites In Multiple Countries All Across The World

New Research Into Space Settlement And Space Habitation Will Be Supported By Seed Grants Launched By UAE

NASA Confirms Mystery Satellite To Be Its IMAGE Satellite

Facebook To Put A Ban On Cryptocurrencies Ads

Study Show An Early Sign For Alzheimer's Is Sleep Disruption

World Politics

World & Politics

Australia To Welcome Britain On The Latter’s Interest In Joining TPP

South African President Zuma Finally Resigns, New President To Be Elected Soon

13 countries with the best healthcare system

France is coming closer to Iran

India-Russia Develops Supersonic Missile Which Could Raise Concerns In China

Yet another serious political risk for Europe: Italian elections coming soon

Seven Weeks Time Period , Says Theresa May, For Agreement On Brexit Transition Deal

Germany on the brink of political chaos