Avast, a well-known anti-virus security software aims at growing and expanding their operations even further as they have acquired AVG Technologies. Does the name AVG sound familiar? AVG is also popularly known for its AVG anti-virus and other related software such as AVG Cleaner which is available for both Android and Mac. Avast has closed a deal with AVG Technologies worth around $1.3 billion, with Avast agreeing to pay $25 for each of AVG’s outstanding ordinary shares.
Avast will greatly benefit from this deal as they themselves have stated that they have acquired AVG to “gain scale, technological depth, and geographical breadth” in order to “take advantage of emerging growth opportunities in internet security, as well as organizational efficiency.”
The origins of both companies can be traced back to Czechoslovakia, with AVG being established somewhere in the early 1990’s and Avast in Prague in 1988. AVG was first named as Grisoft and then later grew into one of the biggest anti-malware tools with compatibility for both computers as well as mobile platforms. AVG now has its headquarters located in Amsterdam.
Avast has become a significant name and earned a grand reputation by controlling more than a fifth of the global software anti-virus market. Earlier this year the company had also announced a new plan of revealing the best Wi-Fi hotspots. With acquiring AVG, Avast will now have access to a much wider platform with almost 400 million endpoints. In other words, the number of devices which have either Avast or AVG installed, with the mobile platform accounting for almost half of that number. Gaining access to more devices also means that the company now has a larger test bed, a greater amount of data on malware to improve its anti-virus and make it the best as they possibly can.
In Avast’s official blog post the CEO, Vincent Steckler, is highly enthusiastic about this as he says, “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.” He further mentions how a common mission and culture can be fused together when he says, “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.”
They are expected to seal the deal by October 2016. This delay is mainly due to the fact that since AVG is a publicly traded firm, the approval of the shareholders in addition to the board of the company is needed. Avast stands to gain a ton of resources and after this acquisition the company is likely to emerge as an even bigger security software giant!