Wednesday, September 3, 2014

AVG Technologies to Acquire Location Labs for $140 Million

Amsterdam-based AVG Technologies N.V. agreed to acquire privately-held Location Labs, a start-up based that that uses location awareness to provide mobile device management and protection, for approximately $140 million initially, plus up to an additional approximately $80 million in cash consideration over the next two years based on the achievement of certain performance metrics and milestones.

Location Labs’ integrated platform for mobile operators, pre-installed service on Android smartphones, and mobile subscription services including family, safety and personal device management, are all expected to complement and expand AVG’s existing mobile offerings. The company is based in Emeryville, California.

AVG said the acquisition significantly broadens its position as the online security company by accelerating its mobile security business. With the acquisition and organic growth, AVG is creating a global business that should generate $60-70 million in mobile bookings in 2015, and anticipates this scaling to around $100 million in mobile bookings in 2016.

“Location Labs has effectively cracked the code for mobile monetization through its highly successful business model with industry partners. This acquisition significantly accelerates AVG’s mobile strategy in this area,” said Gary Kovacs, Chief Executive Officer, AVG Technologies. “According to industry estimates, the number of mobile-connected devices will exceed the world’s population by the end of this year alone. The combined existing mobile user base of both companies gives us the unprecedented opportunity to deliver online security to approximately a quarter of a billion devices as we see more people go mobile to get online.”

http://investors.avg.com
http://www.locationlabs.com

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