Private equity firm TA Associates has acquired a 25 percent stake in security software company AVG Technologies for $200 million. According to reports, the ownership was purchased from AVG’s shareholders and investors, including Intel Capital, and Benson Oak Capital, and Enterprise Investors, which remains the largest shareholder of AVG with 34 percent of shares.
Founded in 1991, AVG provides free antivirus and anti-spyware security software that is distributed through resellers and through the Web and supports all major operating systems and platforms. AVG currently has over 80 million users in 167 countries. AVG reported over $140 million in sales in 2008.
TA Associates says that the investment will be used to fund global expansion and potential add-on deals. The private equity firm also will be distributing cash to shareholders and some investors, which were rumored to want liquidity.
AVG’s technology was actually part of Microsoft Vista’s security essentials but the business is at threat now because Microsoft released the new security essentials which has their own free anti-virus engine, which was acquired from GeCAD in 2003 and Komoku in 2008.
In 2005, Intel Capital and Enterprise Investors invested $52 million into AVG. At that time, the company had 25 million users.
Bad deal. Microsoft just released Microsoft Security Essentials for free. Antivirus companies’ stocks are falling like symantic, mcaffee. I think all antivirus and antispyware companies will now suffer terribly.
Amazing!!!!!
“…which were rumored to want liquidity.”
Who doesn’t?
In 2005, Intel Capital and Enterprise Investors spent $52 million to acquire 65% of the company. Based on the current valuation that stake is now worth $520M – 10X return in 4 years. Well done.
Cut-throat market with good competitors from former Eastern Europe like Kaspersky, http://www.avast.com (= free for home use) and others.
Congratulation to AVG.
They are originally Czech company.
thanks avg
Thanks for this but recently i got a problem in system & i want to recover my data so i search my through net so i got a website which is http://www.stellarinfo.co.in/ which is provide recovery solution & it works
Great news for AVG so congratulations to them but this values them very very highly ($800 million) for a company that may have millions of users but for free software. I know they sell a premium version and the free version is only for home users, but does anyone know their revenues from this?
Can someone explain to me the valuation?
@Tim, the article above clearly states that AVG has $140 mill in revenue.
Congrats to AVG! Great products at affordable prices. They have special offers going on right now, using AVG coupons at GoToDaily.