Avast to buy AVG for US$1.3bil to add security software

MADRID: Avast Software agreed to buy AVG Technologies NV for US$1.3bil in cash to add software to protect mobile phones from malware as it aims to tap into the growing number of physical devices connected to the Internet.

Avast, which is backed by private-equity firm CVC Capital Partners, will begin a tender offer for Amsterdam-based AVG at US$25 a share in cash, the companies said in a statement yesterday. That's 33% above AVG's closing price on Wednesday on the New York Stock Exchange.