Security software company
Avast Software said it would buy Dutch rival AVG Technologies (AVG.N) for $1.3
billion in cash to expand its presence in the emerging markets.
Avast said it will pay $25
per AVG share, representing a 33 percent premium to AVG stock's closing price
on Wednesday.
"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," AVG Chief Executive Gary Kovacs said in a statement.
Avast, which provides free
and paid software for personal computers and mobile devices to businesses and
individuals, has more than 230 million users worldwide.
The company plans to fund
the transaction using cash on hand and debt financing. Avast has received
financing commitment of $1.685 billion from Credit Suisse Securities, Jefferies
and UBS Investment Bank, it said.
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