Cybersecurity Market Review

Avast Acquires AVG With Financial Support By CVC Capital Partners
Avast + AVG Creates Significant Scale In Consumer Security.
Transaction Overview
AVG Stock Performance Since 2015
§
§
Backed By
Acquired
Endpoint Security
Date:
EV / LTM Rev:
EV / NTM Rev:
EV / LTM EBITDA:
Transaction Funding
EV / NTM EBITDA:
$1.46 Billion
7/7/2016
Avast will acquire AVG for $1.5 billion in cash, paying $25 a share, a
33% premium over 7/6 closing price and 32% over 6-mo average
3.4x
3.3x
Avast plans to finance the transaction using cash balances on hand and
committed debt financing from third party lenders
§ Avast has received a financing commitment of $1.69 billion from
Credit Suisse, Jefferies and UBS
§ In addition, Avast has contributed $150 million in equity
Source: Company press releases and websites, 451 Research.
11.7x
9.1x
Share Price ($)
$25
$20
$15
Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16
§ Advanced web and cloud security
§ Mobile Encrypted Users: traffic management
§
100+
Network
Million
performance Scale and In optimization
Consumer
Security
Desktop
Users:
90+ Million
Rationale
"Our new scale will allow us to accelerate investments in growing markets and continue to focus on providing
comprehensive and simple-to-use solutions for consumers and businesses, alike. As the definition of online
security continues to shift from being device-centric, to being concerned with devices, data and people, we
believe the combined company, with the strengthened value proposition, will emerge as a leader in this growing
market,“ said Gary Kovacs, CEO, AVG
23
400M+ Users
Mobile Users
60+ Million
Desktop
Users:
170+ Million
Avast Purchase Price @ $25 / Share
§ Combination creates significant scale in consumer
security with 400M+ users, including 160M+ on
mobile
§ AVG will provide Avast with new growth in
consumer mobile and SMB markets
§ Highly complementary geographical presence
extends Avast’s reach into higher monetizing geos