AVG Partners Say Company Is Ready To Go IPO

Despite an uncertain economic climate, AVG partners say that the company is primed and ready to go public.

Privately held AVG announced last week that it planned to embark on a search for a new CEO, specifically hired to help position the company for a public offering, ideally within the next 12 months, executives said.

"We're looking for somebody who has experience and has gone through that process before," said Siobhan MacDermott, head of corporate communications and investor relations for AVG. "It's exciting for us. We view this as a positive announcement. The company has been doing well."

MacDermott said that Netherlands-based AVG already had hired a recruiting firm that was actively looking for candidates. While she said that there was no specific deadline for an IPO, MacDermott added that "it's probably fair to say that it will be within the next 12 months."

Executives didn't immediately comment on the company's year-over-year growth, but channel partners said that AVG sales have experienced around 25 percent growth during the last year. That growth puts the company in a good position for a public offering, despite the global recession that has thwarted the ability of numerous companies to achieve IPO status, partners said.

"I think the company is ready to do it. They've been planning it for years," said Luke Walling, president and founder of Newton, N.C.-based Walling Data Systems. "From what I've seen, they've got many of the checks and balances in place."

As a result of its impending IPO status, J.R. Smith will ultimately step down as current CEO, although executives say that he would still retain an "operational role" within the company. MacDermott said that AVG wanted a candidate with experience in transitioning a company from private to public.

Partners said that Smith's imminent change of role didn't indicate that the company was in trouble or that Smith's days at AVG were numbered.

"They want to bring in some talent that's been there, done that. I wouldn't blame them," said Gary Fish, founder and CEO of Kansas City, Mo.-based Fishnet Security. "It's pretty complex to take a company public. I'd probably do the same thing -- bringing in somebody who's done this before, so it goes well."

If anything, preparing for an IPO could be a strategic maneuver for the company, partners say. While there doesn't seem to be an upswing in the economy yet, going public could eventually put the company ahead of the game and give the company an advantage once an economic recovery is in sight.

"Not a lot of other companies are going public. Investors are looking for places to put money," Fish said, adding, "[AVG has] a good track record and good history. They've got a good chance of getting a public offering."

Founded in 1991, AVG touts more than 80 million customers, primarily in consumer and SMB markets, in 167 countries, along with a 6,000-member partner base. The company is backed by Benson Oak, Intel Capital and Enterprise venture capital firms.

And if the market doesn't make a speedy recovery? Partners say that AVG is sound enough to weather a few more economic storms.

"Additional growth through a public offering and a new CEO can only bring additional power and know-how to an already very strong brand and product line," Walling said. "Everyone is making a push to grab more business and become more structured for the future. This is the time to do what you can to build up and build out."

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