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Avast Software to buy AVG Technologies for $1.3 billion

Security software provider Avast Software is all set to buy its rival AVG Technologies N.V.for $1.3 billion in an all-cash tender offer.
Security software provider Avast Software is all set to buy its rival AVG Technologies for $1.3 billion in an all-cash tender offer.

Czech Republic-based security software Avast, which provides both free and paid software for personal computers and mobile devices, said that it is acquiring AVG to “gain scale, technological depth, and geographical breadth” and so it can “take advantage of emerging growth opportunities in internet security, as well as organizational efficiency.”

Avast said they will pay the amount with internal resources and debt financing provided by lenders Credit Suisse Securities, Jefferies, and UBS Investment Bank.

In an statement released by Avast,“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,” said Vince Steckler, chief executive officer of Avast Software.

“We believe that joining forces with Avast, a private company with significant resources, fully supports our growth objectives and represents the best interests of our stockholders,” added Gary Kovacs, chief executive officer, AVG. “Our new scale will allow us to accelerate investments in growing markets and continue to focus on providing comprehensive and simple-to-use solutions for consumers and businesses, alike.

“As the definition of online security continues to shift from being device-centric, to being concerned with devices, data and people, we believe the combined company, with the strengthened value proposition, will emerge as a leader in this growing market.”

The deal would make Avast the world’s biggest antivirus software firm by number of active users, exceeding even Microsoft’s market share of antivirus technology on consumer devices.

“Our new scale will allow us to accelerate investments in growing markets and continue to focus on providing comprehensive and simple-to-use solutions for consumers and businesses alike,” said AVG Chief Executive Officer Gary Kovacs.



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