In a blockbuster deal, Netherlands based anti-virus software maker AVG has been acquired by Avast in a huge deal that is worth $25 a share or $1.3 Billion US in total. Here’s why Avast did the deal:
Avast said that it’s 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 efficiencies.”
The combined company will have access to “400 million endpoints” — that is, devices that have some form of Avast or AVG application installed. Almost half of those are mobile, which is key in a world that is increasingly shifting away from the desktop. Access to more devices will serve the joint company a bigger pool of data on malware, meaning it should be better positioned to offer improved security products.
“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 Vincent Steckler, CEO of Avast. “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.”
This deal basically takes two of the biggest players and takes them down to one. But you could see it coming as Microsoft for example is stepping up its game when it comes to endpoint security and anti-virus. Plus sales in this space are at best, flat. Thus consolidation was likely the way to go for both parties. Of course the shareholders of AVG have to approve this deal, but that shouldn’t be a problem given that the boards of both companies have given their approval.
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This entry was posted on July 7, 2016 at 1:54 pm and is filed under Commentary with tags Avast, AVG. You can follow any responses to this entry through the RSS 2.0 feed.
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Avast Snags AVG In $1.3 Billion Deal
In a blockbuster deal, Netherlands based anti-virus software maker AVG has been acquired by Avast in a huge deal that is worth $25 a share or $1.3 Billion US in total. Here’s why Avast did the deal:
Avast said that it’s 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 efficiencies.”
The combined company will have access to “400 million endpoints” — that is, devices that have some form of Avast or AVG application installed. Almost half of those are mobile, which is key in a world that is increasingly shifting away from the desktop. Access to more devices will serve the joint company a bigger pool of data on malware, meaning it should be better positioned to offer improved security products.
“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 Vincent Steckler, CEO of Avast. “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.”
This deal basically takes two of the biggest players and takes them down to one. But you could see it coming as Microsoft for example is stepping up its game when it comes to endpoint security and anti-virus. Plus sales in this space are at best, flat. Thus consolidation was likely the way to go for both parties. Of course the shareholders of AVG have to approve this deal, but that shouldn’t be a problem given that the boards of both companies have given their approval.
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This entry was posted on July 7, 2016 at 1:54 pm and is filed under Commentary with tags Avast, AVG. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.