AVG Technologies has announced a deal worth $220m to acquire US firm Location Labs in order to improve its mobile security offerings. The deal is due to close by Q4 2014.
AVG, which has 182 million customers, said it would pay $140m upfront for the company and then a further $80m over the next two years, based on “certain performance metrics and milestones”.
Location Labs is a major player in the US market, with AT&T, Sprint, T-Mobile, Telefonica and Verizon all listed as partners, which use its technologies to help provide integrated security for Android smartphones.
Commenting on the deal the chief executive of AVG Gary Kovacs said Location Labs was unique in the market for not only offering secure mobile services, but doing so in a way that has enabled it to actually make money.
“Location Labs has effectively cracked the code for mobile monetisation through its highly successful business model with industry partners. This acquisition significantly accelerates AVG’s mobile strategy in this area,” he said.
As a result of this business strategy, AVG said it expects to recoup the outlay on Location Labs by as early as 2015.
Location Labs founder Tasso Roumeliotis said the deal with AVG was a great way for the company to grow beyond its home market and boost its security services.
“Adding AVG’s proven mobile products to our own services and products will significantly enhance the innovation and support we can provide to our partners and to additional markets worldwide,” he said.
The deal comes at the same time AVG announced a new loan of $300m, secured from several major banks, as the company looks to build on its position in the market, with mobile clearly a key part of this growth strategy.
Latest Tesla news: Tesla stock price tanks amid reports of 'widening probe' by SEC and claims the base Model 3 loses money
SEC 'probe' takes its toll on Tesla as new research suggests that Tesla loses $6,000 on every $35,000 Model 3
10nm Cannon Lake Core i3-8121U CPUs make a rare outing with Intel's NUC mini PC
'Notorious' Australian child hacker thought he had executed 'flawless' hack
The former employee says that Tesla fired him for bringing the accusations to management internally