Short Bytes: A major acquisition deal has been announced by Avast in which they will purchase AVG after an all-cash deal of $1.3 billion. The two firms are a known name in the digital security world and have been in existence for more than 20 years.
An amount of $1.3 billion will be paid in cash to complete the acquisition deal. After the deal, the combined user base would jump to 400 million.
The CEOs of both the firms have taken a positive stance regarding the deal. Here’s what they had to say:
“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, CEO of Avast Software.
“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,” said Gary Kovacs, CEO of AVG.
The combined operations of these companies will definitely contribute to better detection of malicious software and other malware threats.
The payment for the all-cash deal will be made by Avast at $25 per share for all the outstanding ordinary shares of AVG. Avast will finance the deal using the liquid money they have and committed debt financing from banking firms.
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