Antivirus merger: Avast offers $1.3 billion for AVG

The merger will give Avast control of 400 million network "endpoints" running the companies' software

Antivirus vendor Avast Software has agreed to buy rival AVG Technologies for US$1.3 billion in cash.

The deal will give Avast access to over 400 million "endpoints," or devices running its and AVG's software, 160 million of them phones or tablets, the company said Tuesday.

Avast hopes the deal will make the combined company more efficient, as well as allowing it to take advantage of new growth opportunities such as securing the internet of things.

"This combination is great for our users. We will have over 250 million PC/Mac users enabling us to gather even more threat data to improve the protection to our users," Avast CEO Vincent Stickler wrote on the company blog.

The deal will also give Avast access to AVG's Zen mobile technology for controlling the protection of all a family's devices from just one of them, he said.

The combined footprint of the two companies will also mean better technical support for SMBs, he said.

AVG is perhaps best known for its free antivirus software, available for Windows PCs, Macs and Android devices, but it also sells "Pro" versions of the same software with additional features, and a number of Internet security applications for enterprises.

Revenue from all these will be between $104 million and $106 million for the quarter to June 30, it said Tuesday. That's on a par with its results over the previous four quarters. AVG will publish full results for the quarter shortly, it said.

Less than two-thirds of AVG's revenue comes from its traditional desktop security product business, and the proportion is declining. Almost one-sixth of the company's revenue comes from search advertising.

Avast is privately owned and no longer publishes its financial results.

Neither company said what would happen to their respective product ranges after the closing of the deal,which still requires approval from shareholders and regulators, but AVG CEO Gary Kovacs said it will allow the company to invest more in growing markets.

It's shake-up time in the security software market: As Avast prepares to take one company out of play, Intel may be about to put another one back in. It is said to be considering the sale of the security business it build around McAfee, which it acquired in 2011.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags AVGmalwareAvast

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Peter Sayer

Peter Sayer

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?