WOW!!! Apparently free software makes good money

Antivirus maker Avast buys rival AVG for $1.3 billion. Security vendor Avast is acquiring fellow antivirus maker AVG, best known for its free consumer products, in a cash deal valued at $1.3 billion.

In addition to scale, Avast is looking to broaden its portfolio to look at areas such as IoT, as well as increasing “geographical breadth,” the company said in a statement.

While the two companies are both headquartered in the Czech Republic and have offices worldwide, AVG has locations in the UK, Canada, Israel, Australia and Brazil where Avast does not have physical presence.

According to Avast, the combined user base will include more than 400 million endpoints, of which 160 million are mobile.

The transaction is priced at $25 per share. Avast said in its statement that the offer represents a 33 per cent premium over the July 6 closing price of AVG.

The transaction is expected to close between September 15, and October 15, 2016, pending regulatory review.

For a free software provider they sure must be making looks of scratch…I wonder how.