News Feed Item

AVG Solidifies Leadership in Growing Mobile Security Market with Acquisition of Location Labs

Location Labs adds industry relationships, mobile monetization and strategic technology to AVG's consumer offerings for devices, data, and people

AMSTERDAM and SAN FRANCISCO, Sept. 3, 2014 /PRNewswire/ -- AVG® Technologies N.V. (NYSE: AVG), the online security company™ for 182 million active users, today announced a definitive agreement to acquire privately-held Location Labs, a global leader that uses mobile technology to protect people. Location Labs has been recognized as an Inc. 500/5000 Fastest Growing Private Company for five consecutive years.

The acquisition brings AVG a proven innovative platform of personal security products for mobile devices and deep integration with global industry partners, including all four major mobile operators in the United States. 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.

This acquisition significantly broadens AVG's 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."

AVG's established mobile offerings include the popular AVG AntiVirus for Android™ app, the first security app to exceed 100 million downloads on Google Play™. With AVG Zen™, an application for Windows® PCs and Android™ smartphones and tablets that launched earlier this year, AVG is directly addressing the challenges consumers face today in retaining control over their privacy, protection, and performance in a world increasingly dominated by the Internet of Things. Combining the strengths of both product portfolios will create a comprehensive consumer mobile business that will help give customers a safer, simpler and more meaningful connected experience.

"Location Labs has differentiated itself through building a valued partnership model for mobile operators. Adding AVG's proven mobile products to our own services and products will significantly enhance the innovation and support we can provide to our partners and to additional markets worldwide," said Tasso Roumeliotis, Founder and Chief Executive Officer of Location Labs.

Following the close of the acquisition, Location Labs CEO, Tasso Roumeliotis, will continue to lead the Location Labs business.

Transaction Terms and Financials

  • Under the terms of the agreement, AVG will pay 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.
  • AVG expects the transaction to be neutral to EPS in 2015.
  • The transaction is expected to close during the fourth quarter of 2014 and is subject to customary closing conditions, including AVG shareholder approval.
  • The transaction is subject to AVG shareholder approval at an Extraordinary General Meeting ("EGM") and AVG's Supervisory Board and Board of Management (the "AVG Boards") will convene the EGM today. The EGM will be held on 14 October 2014 at 09:30 a.m. CET, at the offices of Allen & Overy LLP, Apollolaan 15, 1077 AB Amsterdam in the Netherlands. The AVG Boards, taking into account the interests of shareholders and other stakeholders, have approved and recommended the transaction.
  • In connection with the transaction, AVG has obtained commitments for senior secured credit facilities in the amount of up to USD 300 million as described in a separate release issued today.

Conference Call Information

AVG will hold a conference call today at 14:30 CET/8:30 a.m. ET/5:30 a.m. PT to discuss the acquisition. The conference call may be accessed via webcast at http://investors.avg.com or by calling 888-523-1225 (U.S. and Canada) or +1 719-325-2428 (International) and entering Conference ID: 7152152#.

A replay of the webcast can be accessed via http://investors.avg.com. Additionally, an audio replay of the conference call will be available from Wednesday, September 3, 2014 at 8.30 AM PT until Wednesday, September 10, 2014 at 8.30 AM PT. To access, call 888-203-1112 (U.S. and Canada) or +1 647-436-0148 / +1 719-457-0820 (International) and enter Passcode: 7152152#.

AVG Technologies N.V. LOGO.

Logo - http://photos.prnewswire.com/prnh/20120306/SF65434LOGO

About AVG Technologies (NYSE: AVG)

AVG is the online security company providing leading software and services to secure devices, data and people. AVG has over 182 million active users, as of June 30, 2014, using AVG's products and services including Internet security, performance optimization, and personal privacy and identity protection. By choosing AVG's products, users become part of a trusted global community that engages directly with AVG to provide feedback and offer mutual support to other customers.

All trademarks are the property of their respective owners.


About Location Labs

Location Labs is the global pioneer in mobile security for humans. Our award-winning device management and location technologies protect more than just information on devices—we protect the people who carry them. By partnering with Tier 1 mobile operators such as AT&T, Sprint, T-Mobile, Telefonica and Verizon Wireless, our mobile services have been distributed to more than 50 million users and upwards of 1 million monthly paying subscribers. And all our technology is built on our Sparkle connected device platform, which combines smartphone capabilities with mobile network capabilities, for user experiences that cannot be replicated. Our mobile security services include Family Locator, Drive Safe and Account Analytics & Controls. Location Labs is headquartered in Emeryville, Calif, and operates in the US, Europe and India. Visit www.locationlabs.com.

Keep in touch with AVG


SOURCE AVG Technologies

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
So you think you are a DevOps warrior, huh? Put your money (not really, it’s free) where your metrics are and prove it by taking The Ultimate DevOps Geek Quiz Challenge, sponsored by DevOps Summit. Battle through the set of tough questions created by industry thought leaders to earn your bragging rights and win some cool prizes.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
Governments around the world are adopting Safe Harbor privacy provisions to protect customer data from leaving sovereign territories. Increasingly, global companies are required to create new instances of their server clusters in multiple countries to keep abreast of these new Safe Harbor laws. Is it worth it? In his session at 19th Cloud Expo, Adam Rogers, Managing Director of Anexia, Inc., will discuss how to keep your data legal and still stay in business.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect...
Successful transition from traditional IT to cloud computing requires three key ingredients: an IT architecture that allows companies to extend their internal best practices to the cloud, a cost point that allows economies of scale, and automated processes that manage risk exposure and maintain regulatory compliance with industry regulations (FFIEC, PCI-DSS, HIPAA, FISMA). The unique combination of VMware, the IBM Cloud, and Cloud Raxak, a 2016 Gartner Cool Vendor in IT Automation, provides a co...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
SYS-CON Events announced today that Niagara Networks will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...