AVG Technologies announced its plan today to acquire Location Labs, a privately-held company focused on securing mobile devices.
AVG Technologies will pay $140 million initially, plus an additional $80 million in cash considerations during the next two years based on the achievement of certain performance-related criteria. The company expects the deal to close in the fourth quarter of 2014.
“Location Labs has effectively cracked the code for mobile monetization through its highly successful business model with industry partners,” said Gary Kovacs, chief executive officer at AVG Technologies, in a statement. “This acquisition significantly accelerates AVG’s mobile strategy in this area.”
AVG has high hopes for the deal. Between the acquisition and organic growth, AVG estimates its global business will generate $60-70 million in mobile bookings in 2015, and anticipates that scaling to around $100 million in mobile bookings in 2016.
AVG’s mobile offerings include the AVG AntiVirus for Android app as well as AVG Zen, an application for Windows PCs and Android smartphones and tablets that launched earlier this year. In Location Labs, AVG is getting a platform of security products for mobile devices that integrates with major mobile operators in the United States.
“Location Labs has differentiated itself through building a valued partnership model for mobile operators,” said Tasso Roumeliotis, founder and chief executive officer of Location Labs, in a statement. “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.”
Once the acquisition closes, Location Labs CEO Roumeliotis will continue to lead the Location Labs business.