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AVG expands in mobile market with Location Labs takeover
2014-09-03 13:34:00| Telecompaper Headlines
(Telecompaper) AVG Technologies announced a definitive agreement to acquire privately-held Location Labs, a provider of personal mobile security services. Available with all four major mobile operators in the US, Location Labs' integrated platform for mobile operators is a pre-installed service on Android smartphones, with mobile subscription services including family, safety and personal device management. AVG said the takeover will strengthen significantly its mobile business, with its own mobile security software added to Location Labs' subscription services. AVG estimates the deal will take its mobile bookings to USD 60-70 million in 2015 and around USD 100 million in 2016. Following the close of the acquisition, expected in Q4, Location Labs CEO Tasso Roumeliotis will continue to lead the Location Labs business. Under the terms of the agreement, AVG will pay USD 140 million initially for the company, plus up to an additional USD 80 million 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 company had obtained USD 300 million in credit facilities to help finance the takeover, and the acquisition will be subject to approval by its shareholders at a meeting scheduled for 14 October.
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Category:Telecommunications