AVAST has announced that it is going to buy AVG antivirus company for $1.3 billion. This indicates that more such mergers or acquisitions will be seen in security markets as well- all a part of industry consolidation strategy.
The deal is said to be more of a merger where Avast which has access to more than 400 million devices worldwide will merge its customer base with AVG’s 160 million customers. The deal will allow companies to take advantage of new growth opportunities such as securing the internet of things.
“This combination is great for our users. We will have over 250 million PC/Mac users enabling us to gather even more threat data to improve the protection to our users”, said Avast CEO Vincent Stickler. He added that the deal will also give Avast access to AVG’s Zen mobile technology for controlling the protection of all family devices instead of just one.
In the security market of Anti-malware softwares, Avast is touted as a leader for its free offerings for Windows PCs, Macs and Android devices. AVG is more popular for its “Pro” versions of same software which has the potential to isolate a device even from the new age malware threats.
In its latest SEC filing, AVG quoted its revenue to be between $104 million and $106 million for the quarter to June 30th, 2016. Less than two thirds of AVG revenue comes from its traditional desktop security product business and almost one-sixth of it comes from search advertising.
Avast is a privately owned company and so no longer offers its financial results to public.
Note- Intel is also in plans to buy McAfee software for an undisclosed sum soon. So, it’s indeed a shake up time for security software market.