Antivirus company Avast Software plans to acquire its Dutch rival, AVG Technologies, for $1.3 billion in cash.
Avast announced a few days ago that it will buy Amsterdam-based AVG Technologies for $25 per share in an all-cash transaction valued at $1.3 billion with the aim of expanding its presence in emerging markets.
With more than 230 million users worldwide, Avast offers free and paid security software packages for both computers and mobile devices to businesses and individuals.
The deal between the two popular security software companies will provide Avast with 400 million endpoints – devices that will have some form of Avast or AVG app installed.
However, AVG technologies was in controversy for updating its policy which clearly states that the company will allow users to collect and sell “non-personal data” to advertisers in order to “make money” from their “free services” so that they can continue to have them for free.
AVG CEO Gary Kovacs said:
“We believe that joining forces with Avast, a privately held company with significant resources, fully supports our growth goals and represents the interests of our shareholders.”
The deal will also provide Avast with expanded geographic reach in its core business.
This is the second major technology acquisition in recent months. Just last month, Microsoft made the biggest acquisition, acquiring LinkedIn for $26.2 billion in cash.
