Avast purchase competitor AVG: $ 1.3 billion

the beginning of Thursday ( 7), Avast said it had closed a deal to acquire AVG competing in a billion dollar trading. Each share of the company will be purchased for $ 25 , resulting in a transaction of approximately US $ 1.3 billion ,the amount to be paid in cash after the process was approved . The goal of the union is to expand the operations of companies in the digital security market , especially in developing countries and focused on the internet concept.

According to AVAST, the acquisition of AVG was the result of unanimous decision of the management and supervision of the company. The competitor, the approval came from majority recommended that shareholders accept the proposed sale. Together, the two anti-virus software companies are present in more than 250 milllion PC's and MAC's, plus another 160 million mobile devices.

 

 

The Union

 

 

 The two companies have very similar stories, which facilitated the negotiations. Both were founded in the Czech Republic during the same period: Avast was born in 1988 when the researcher Pavel Baudis developed a software that removed the virus called Vienna. AVG competitor was created four years later, in 1992. The companies gained strength on the international scene in the 2000s and only AVG has an office in our country.

"We believe that joining forces with Avast, a private company with significant resources, is fully consistent with our growth proposals and represents the best interests of our shareholders," said Gary Kovacs, CEO of AVG through a press statement . "Our larger scale will allow us to accelerate investments in growing markets and continue to focus on and provide simple solutions and understanding for consumers and businesses."

But there is an important difference between the two: Avast is a privately held company, while AVG has shares listed on the stock exchange, detail that allowed this transaction between the two. For the purchase, 33% number was considered above the closing value of the papers on Wednesday (6). If all goes well, the acquisition will go through regulatory approval and will be completed only in the coming months.