Antivirus software firm Avast has agreed to buy rival company AVG in a cash deal worth $1.3 billion, it was announced on Thursday.
Avast said it will pay $25 per AVG share and will finance the deal with its existing cash reserves and from financing debt from outstanding third party lenders.
Avast said the deal would enable the company to add more software products to help protect users from malware and increase its presence in emerging markets.
The deal will also help the company to move into new areas such as the Internet of Things – the network used to connect all manner of physical devices and appliances, such as cars, fridges and coffee machines. IoT is seen to have huge potential growth and is key focus area for many 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,” said AVG Chief Executive Gary Kovacs.
“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,” he added
Avast, which offers both free and paid antivirus software and mobile apps for individuals and businesses has more than 230 million users globally.
Avast says the deal to buy AVG will give them access to 400 million users, 160 million of which are thought to be mobile users.