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.
Reporting by Shivam Srivastava in Bengaluru; Editing by Sunil Nair and Gopakumar Warrier