Avast to acquire AVG in $1.3 billion internet security deal

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PRAGUE (AP) — Avast Software says it is acquiring its anti-virus rival AVG Technologies N.V. in a $1.3 billion deal.

Prague-based Avast says it is ready to pay $25 per share in cash for Amsterdam-based AVG, 33 percent above Wednesday's closing price on the New York Stock Exchange after the two signed a deal on it.

Avast said Thursday the deal is meant to "gain scale, technological depth and geographical breadth." It aims to "take advantage of emerging growth opportunities in internet security as well as organizational efficiencies" with a goal to becoming serious competition for the global leaders in the internet security business.

The companies have over 400 million users combined.

Avast says the transaction is expected to close between Sept 15 and Oct 15.