For obvious reasons, the idea of a shake-up in the security world isn't good news, but that's exactly what Avast has just announced. The new announcement reveals the acquisition of AVG, one of its main competitors, for the sum of 1.3 billion dollars. It is estimated that this purchase will extend Avast's presence to 400 million devices, making it one of the largest players in the market. I'm personally very interested to see how it will impact the company in the future.
A Shared History
It's easy to think of Avast and AVG as direct competitors, but these two companies have more in common than just the market they compete in. Both originate from the Czech Republic, were founded with just three years apart (Avast in 1988, and AVG in 1991), were the first to offer a free antivirus (AVG took the first step), and share a similar market share, with an average of 200 million users each. From a certain perspective, imagining a merger between the two companies isn't too far-fetched, but what we have here is a formal acquisition announcement.
Through a lengthy post on Avast's official blog, CEO Vincent Steckler revealed that everything is ready to start the purchase of AVG.
The Acquisition Details
As always, the process will need to be approved by the corresponding regulatory agencies (it's worth mentioning that Avast maintains a private profile, while AVG is a public company trading on the stock market). If the deal gets the green light, Avast will pay about $25 in cash for each share of AVG, setting a final price of 1.3 billion dollars.
In essence, this purchase will allow Avast to extend its user base to more than 400 million, split between 250 million computers running Windows and OS X, and about 160 million users on mobile devices. The approval process limits the amount of information available, but it's known that Avast will receive several family protection technologies for smartphones and will be able to improve the reach of its technical support, especially in the business environment.
What About Free Versions?
Needless to say, the big question is how the free solutions will continue to work for both companies once the transaction is finalized. Personally, I don't think Avast will implement radical changes, beyond the development of a new common engine that combines the detection capabilities of both companies.
