Avast Announces Agreement to Acquire AVG for $1.3B
Two popular antivirus software companies Avast and AVG, have similar sounding names, with both having the “AV” in their names.
Avast, an industry-leading and the most trusted security software in the world, and AVG Technologies, developing software for mobile and PC device security applications, It is announced that they both entered into a purchase agreement, Avast offers the ordinary shares of AVG for $25.00 per share in cash, for which total amount will be approximately $1.3B. Both companies founded in the Czech Republic in the late 1980s, and now will be combining their strengths to position Avast for continued growth in the security industry.
The transaction is structured as offered price is of $25.00 per share in cash. Avast plans to finance the transaction using cash balances on hand and remaining amount will be lended from Suisse Securities, Jefferies and UBS Investment Bank. In addition, Avast has contributed $150 million in equity investment to fund the transaction.