Can we just call it a security titan? Or how about an antivirus behemoth? Because that is what it will be when Avast buys AVG to create the biggest provider of antivirus and security software.
Avast and AVG are both two of the biggest names in the world of Windows when it comes to antivirus, with both companies building their success off the back of making their products free for users to download, but with paid versions that offer more features.
Both companies have also recently expanded their services, offering security apps for mobile devices.
And both were founded in the Czech Republic, and have been known as close rivals.
Now, though, Avast Software is offering $25 per share in cash to acquire AVG Technologies for a remarkable price of $1.3 billion in a move that it hopes will further expand its business as well as reach other markets.
Vince Steckler, CEO of Avast Software:
“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. 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.”
Worth noting that Avast is a privately owned company, while AVG is a public enterprise that is listed on the New York Stock Exchange.
Both companies have userbases of around 200 million. And after the acquisition, Avast will have somewhere around 250 million PC and Mac users, while 160 million mobile users. It will also gain new technology, including some mobile security expertise.
These OPSWAT statistics for the month of January 2015 show that Avast has a market share of 21.4%, while AVG was listed at around 8.6%.
Combined, the new company will own some 30% of the security market, one third, so to say.