Computer software security company AVG Technologies has got a funding round of $235 Million as a part of new credit agreement with J.P Morgan and Morgan Stanley. With this agreement, the company has got the five-year term lean in its first-ever capital markets transaction.The financing will be used by AVG to realize strategic growth opportunities and als pay dividend to its shareholders.
AVG CEO J.R. Smith commented on the financing:
“AVG has created one of the world’s largest installed customer bases for anti-virus software, and has delivered powerful security technologies and solutions that are proven and well-respected in the market. The potential and growth opportunities for our business are extraordinary, and we are delighted that the market has recognized that potential with this new credit facility led by two of the most respected global institutions, J.P. Morgan and Morgan Stanley.
“This financing further strengthens AVG’s market position, provides additional financial flexibility, and enhances our ability to execute our strategic plans. AVG firmly believes that basic internet protection should be free, and we continue to offer the most robust free offering in the market which forms the cornerstone of our financial success through the company’s unique business model. We look forward to continuing to address the expanding needs of the global security software market through improved technology and broader language and platform support.”
AVG has been heading several developments lately; it recently acquired an Android anti-malware application developer DroidSecurity, which is among the most popular security applications on the market, with 4.5 million downloads by Q4 of last year. As mobile security is becoming a rising concern, we are watching several companies making their attempts to ward off evils called Viruses and malware.
In the same thread, Intel acquired McAfee to boost up its portfolio. The deal was completed for $7.7 billion. Talking on the same, Intel senior vice president and general manager of the Software and Services Group, Renée James said,
“It became clear to us that security was going to be a very important feature to help us differentiate our silicon… Security market will consolidate because there will be a step-function change in how security is delivered. She further mentioned about the cloud, “In the long term security will be a differentiator for mobile devices. The cloud piece is a high-order bit. You can’t wake up and build it.”
Mobile security was also a hot topic in RSA Conference 2011 held in San Francisco, as mobile money and the surging popularity of online payments have also attracted security breaches. A Symantec official also showed his concern on damages being caused by virtual systems and crucial importance of network security. This clearly reflects how much security is becoming a rising concern these days.