Avast Closes Acquisition Of AVG, Looks To Create A 'Global Powerhouse'

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Avast Software has closed its acquisition of AVG, the company announced Friday, a move CEO Vince Steckler said will allow the two traditional security software companies to better compete in today’s competitive endpoint security market.

Avast first announced the acquisition in July, saying it planned to acquire AVG for $1.3 billion. The deal brings AVG’s anti-virus, remote monitoring and management, Internet security, mobile security and cloud security offerings to Avast’s own anti-virus, mobile security, email security and file server offerings. In total, the combined companies will protect 400 million endpoints, of which 160 are mobile.

In an interview with CRN, CEO Vince Steckler said the acquisition creates a “global powerhouse” in the consumer security market, with a “massive footprint” in free and freemium security. On the corporate side, Steckler said the companies’ partners will benefit from having access to a larger portfolio of security solutions.

[Related: Partners Hope Avast-AVG Deal Will Spur Investments In Both Companies' Technology]

That scale, breadth of portfolio and geographic reach will be key as Avast looks to weather a rapidly changing and maturing security market, Steckler said. At the time the acquisition was announced, Avast said acquiring AVG would allow it "to gain scale, technological depth and geographical breadth,” allowing it to "be in a position to take advantage of emerging growth opportunities in Internet security," as well as organizational efficiencies.

“This gives us a huge ability to thrive in a more difficult market going forward,” Steckler told CRN.

Stecker said there is a “fair amount” of overlap in the two companies' business processes, as well as a “fair amount” of overlap in the product portfolios. He said AVG and Avast will run two separate brands in the consumer space going forward, with a combined security engine on the back end that will be available starting in January. Steckler said Avast has not yet decided whether it will combine the brands of the two corporate portfolios.

“We do have synergies there, but we are sorting through that now and we have to socialize it with staff as to what it is and what it means. I think it will be later this year before we start announcing doing anything there,” Steckler said.

Steckler said the two companies will operate under a single partner program, likely incorporating Avast’s partners into the AVG program, which he said has a “much bigger partner network.” Both sets of partners will have access to the full set of solutions of both vendors under the combined program, he said.

“It should be good for the partners. There’s nothing being taken away …They will have access to more products and access to more customers, as some customers have a preference as to what security products they buy. It gives them more things in their bag to sell,” Steckler said.

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