CVC and Summit’s Avast in $1.3bn deal for TA’s AVG

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CVC and Summit Partners-backed antivirus developer Avast has acquired a majority stake in Dutch competitor AVG in a $1.3bn add-on acquisition.

Enough AVG shareholders, including TA Associates with 13%, have accepted Avast's bid of $25 per share for the NYSE-listed business, allowing AVG to acquire the company and assume it under the Avast structure. The acquirer will enact a compulsory purchase of any outstanding shares before the end of October, which is allowed under Dutch law if any single shareholder owns 95% of a listed company's shares. The bid was made in the beginning of July 2016 and, as of closing, the two companies will operate as a single entity.

The acquirer's offer for AVG's shares represented a 33% premium on the company's closing price on 6 July and 32% more than the six-month, volume-weighted average share price.

Avast's acquisition sees Prague-based AVG return to private equity ownership, having previously been backed by Polish VC Enterprise Investors and Enterprise Capital between 2005-2012, with TA Associates acquiring a minority stake in 2009.

AVG is the first bolt-on acquisition for Avast since CVC acquired the company in 2014. CVC's portfolio company has secured a $1.685bn debt commitment from Credit Suisse Securities, Jefferies and UBS to finance the deal, in addition to $150m of equity from Avast.