Security vendor AVG Technologies filed Friday for an initial public offering that is expected to raise $125 million.
The Amsterdam-based software maker is best known for the free version of its anti-virus software, which the company hopes will lead to users upgrading to the premium version. The company targets consumers and small businesses with a portfolio that includes Internet security, PC performance optimization, online backup, mobile security, identity protection and family safety software.
In a Securities and Exchange Commission filing, the company said revenue in 2010 was $217 million, which represented a 38 percent compound annual growth rate since 2008. During the first nine months of last year, revenue reached $198 milion. From 2008 to 2010, net income grew from $33 million to $67 million.
AVG, which says it has 106 million active users, generated almost 31 percent of its 2010 revenue from resellers and distributors. Large retail stores carrying its products include Wal-Mart. "This reseller network forms a part of our brand marketing strategy and generates the majority of our small business sales," the company said.
Underwriters of the IPO were Morgan Stanley & Co., J.P. Morgan Securities and Goldman Sachs & Co.