Avast Software has agreed to buy rival AVG Technologies for $1.3bn in cash to expand its presence in emerging markets, the Prague-based security software developer said on July 7.
Avast said it will pay $25 per AVG share, representing a 33% premium to AVG stock's closing price on the New York Stock Exchange on April 6. The company plans to fund the transaction using cash on hand and debt financing. Avast has received financing commitment of $1.685bn from Credit Suisse Securities, Jefferies and UBS Investment Bank. In addition, Avast has contributed $150mn in equity investment to fund the transaction.
Private-equity firm TA Associates, AVG’s biggest shareholder with a 13% stake, has agreed to tender its shares.
“Avast is pursuing this acquisition to gain scale, technological depth and geographical breadth so that the new organization can be in a position to take advantage of emerging growth opportunities in internet security as well as organizational efficiencies,” the company said in a statement. The acquisition will help Avast expand both its core business and new areas such as Internet of Things, a term used to refer to the network connecting physical devices to the internet.
Avast, backed by private-equity firm CVC Capital Partners, provides free and paid software for personal computers and mobile devices to businesses and individuals. It has more than 230mn users worldwide. The company planned an initial public offering in 2012, but cancelled the sale because of market conditions.
Russian internet services major Yandex posted revenue growth of 21% year-on-year to RUB23.4bn ($406mn) in the third quarter of 2017 under US GAAP (generally accepted accounting principles), the ... more
Russian online giant Yandex has launched a voice assistant, "Alisa", available on Android and iOS and, as a beta-version, on Windows, the company said on October 9. Based on neural networks ... more
The high court of Podgorica said it has decided to unfreeze the shares of Italy’s A2A in Montenegro’s power firm EPCG after ... more