Avast Software security has acquired Dutch competitor AVG’s technologies via a cash deal of $1.3 billion. As expected this deal will help Avast Software strengthen its foothold and magnify its presence. Elucidating the deal further, Avast is ready to pay $25 per AVG share and this translated into a 33% premium over the current share prices.
This is what AVG Chief Executive Gary Kovacs had to say “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.”
Avast has been one of the most preferred security solution providers and it serves a user base in excess of 230 million. Also, the user base is spread across its enterprise offerings, individuals and also mobile devices. The deal doesn’t come across as a complete surprise since Avast has recently received a financing assurance of $1.685 from Jefferies, Credit Suisse Securities, and UBS Investment Bank.
When it comes to market share Avast in 2015 was second on the leader board with a cumulative share of 15% and it was Microsoft leading the game at 21.4%. AVG, on the other hand, commanded a market share of 8.6%. The numbers give away the fact that in all likelihood Avast will top the vendor market share after acquiring AVG.