In a classic case of acquiring a company that offers related and complementary services that can beef up a company’s offerings, antivirus company AVG Technologies has a acquired mobile location and security company Location Labs for $220 million.
Location Labs, which first focused on providing location data to developers, eventually pivoted to mobile security for Android phones, and it also offers its users granular control over their family’s devices thanks to its deep integration with mobile carriers’ networks. Location Lab’s products are white-labeled under its partner telecom carriers, and users pay between $5 and $15 for its services, which come pre-loaded on the phones.
AVG made its name in the antivirus game by providing software for an undeniable price tag: free. Although the company already provides security software for Android devices (along with PCs and Mac computers), the Location Labs acquisition will significantly expand AVG’s mobile business. The company expects to generate $60 million to $70 million in 2015 from its mobile offerings.
“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 AVG chief executive Gary Kovacs in a statement.
AVG already boasts more than 182 million users pre-acquisition.
The deal is expected to close during the fourth quarter of 2014, and Location Labs chief executive Tasso Roumeliotis will continue to lead the Location Labs division of AVG. For the purposes of this acquisition, AVG has secured a credit facility of up to $300 million from Morgan Stanley Senior Funding, HSBC Securities, and others.
AVG has most recently acquired Level Platforms and PrivacyChoice, among its acquisitions. Location Labs has previously raised $25.8 million in funding.