CZECH - TA spends $200m on Czech security

Kim
05 October 2009

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TA Associates has paid more than $200m to acquire a minority stake in Czech computer security software firm AVG Technologies from incumbent private equity backers including Enterprise Investors.

The deal marks the largest for Central and Eastern Europe this year, and sees Enterprise reap more than 4x its original investment in the company (including related dividends).

Founded in 1991 as Grisoft, the Brno-based business was initially backed by Benson Oak Capital in June 2004. Benson Oak ceded a 65% stake in the business in 2005 to Enterprise and Intel Capital when the two pumped a combined $52m into the business. Enterprise, which contributed $31m in that round, now retains a 34% stake in the business.

Today AVG boasts 80 million customers from 167 countries. It is believed the backers had planned a flotation to rival or even surpass the success of 3TS-backed LogMeIn, whose $100m Nasdaq flotation this past July marked the largest-ever of a technology company with CEE origins. Prior to its float, Budapest- and Woburn, Mass-based LogMeIn had raised $30m of venture backing, with 3TS coming on board in 2004 as its first institutional backer.

Two TA representatives will join AVG's board as a result of the deal.