SECURITY FIRM Avast Software has announced plans to acquire AVG for $1.3bn, or $25 a share, in a deal designed to allow the combined companies to better handle modern threats and tackle new risks associated with the Internet of Things (IoT).
Avast said that it will benefit from the extra scale provided by the acquisition. The new entity will have a network of 400 million endpoints, each of which is set up to detect and deal with malware, the firm said.
This should allow capable search and discovery, according to the pair, and increase the number of customers.
The boards are going to have to agree to this, and AVG shareholders will have to decide whether the $25 a share offer is worth the bother.
AVG is a tasty option for Avast, which has acquired privacy services including Hidemyass and Privax in the past year. Avast has shown itself to be smarter than the kind of people it serves, which provides some confidence.
"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," said Vince Steckler, chief executive at Avast.
"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 the IoT."
Gary Kovacs, chief executive at AVG, is also confident that the acquisition will benefit both companies.
"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," he said.
"Our new scale will allow us to accelerate investments in growing markets and continue to focus on providing comprehensive and simple-to-use solutions for consumers and businesses alike.
"As the definition of online security continues to shift from being device-centric to being concerned with devices, data and people, we believe the combined company, with the strengthened value proposition, will emerge as a leader in this growing market."
We imagine that this means better protection for customers, and probably a few desktop notifications about changes to one or other of the services, depending on your choice of provider. µ
Much a (dil)do about nothing
Neither the time nor the face
The tiny tweaks are coming thick and fast now
Gitting more secure