One of the biggest antivirus software developers Avast Software announced the acquisition of its competitor AVG Technologies N.V., which is worth $1.3B and makes it the first Unicorn in the Czech Republic.
Avast is going to buy the shares of AVG for $25.00 per share in cash. This acquisition will allow Avast to grow technologically and geographically and provide customers with more advanced security offerings for business and IoT devices.
Both companies are industry pioneers founded in the Czech Republic on the boundary of the 1980’s and 1990’s. At that time a large number of computer-savvy people graduated from technical colleges, but the country’s small IT industry couldn’t provide them with jobs. So, lots of computer nerds devoted their skills and free time to hunting down viruses. And finally, this hobby went commercial after the end of communist rule. Talented people were attracted to the industry and joined the quickly developing companies.
Both Avast and AVG expanded internationally in the 2000’s after AVG started to give away its software for free. Avast did the same when AVG began to grow rapidly. Currently, the combined user base exceeds 400 million people, of which 160 million are on mobile. So, the company will further focus on developing technically advanced personal security and privacy products.
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