Acquisition furthers AVG’s vision for delivering cloud-based, cross platform services to consumers and small business customers
MELBOURNE – June 14, 2013 – AVG Technologies N.V. (NYSE: AVG), the provider of Internet and mobile security, privacy and optimization to 150 million active users, today announced that it has entered into an agreement to acquire, subject to closing, the business of LPI Level Platforms Inc., a leading remote monitoring and management software company.
Headquartered in Ottawa, Ontario, Canada, LPI Level Platforms provides next generation remote monitoring and management software (RMM) through Managed Workplace®, its award-winning cloud-based remote monitoring and management platform. With its advanced hybrid agentless architecture, this platform provides visibility and unified management of the entire IT infrastructure, including devices, applications, networks and cloud, while providing superior ease of use, security and control for the user.
The acquisition will enhance AVG’s cloud-based services model by adding LPI Level Platforms’ Managed Workplace® software to AVG CloudCare™, integrating products such as RMM and Mobile Device Management (MDM). In addition, it will significantly expand AVG’s distributor network by adding over 1,500 active LPI Level Platform Managed Service Providers (MSP) partners.
“Since founding the company our mission has been to establish LPI Level Platforms as the ubiquitous remote monitoring, management and automation platform for IT service providers around the world.”, said Peter Sandiford, LPI Level Platforms’ CEO. “By adding LPI Level Platforms software to the AVG portfolio, AVG will be in a position to deliverthe most comprehensive, innovative, high quality and high performance platform for SMB’s and their MSPsin the market.”
“Our two companies’ share a goal of delivering a powerful cloud-based IT management platform for MSPs that profoundly simplifies the way you service and protect your small business customers” addedSam Hendry, General Manager AVG Technologies AU. “AVG is in a position to develop the LPI Level Platforms’ product portfolio and deliver a significantly enhanced product offering globally, leveraging our brand and organization to support growth. The technology requirements for small businesses are increasing day by day as the world migrates towards a mobile working environment. AVG has the infrastructure and partner base to enable customer growth in a safe, cost-effective and secure way.”
AVG CloudCare™ provides small business resellers and MSPs with a free-of-charge, easy-to-use cloud-based administrative platform, allowing them to remotely deploy and manage their clients’ security with AVG AntiVirus. AVG CloudCare has amassed more than 1,000 reseller partners and is already managing tens of thousands of small business endpoints across the UK and North America.
Acquisition Overview
- § LPI Level Platforms’ cloud-based and Software-as-a-Service (SAAS) recurring revenue stream is a natural complement to the AVG SMB CloudCare model. LPI Level Platforms and AVG share the same ‘go to market’ approach in the rapidly growing cloud-based services SMB segment.
- § The combination of LPI Level Platforms’ cloud-based RMM/MDM portfolio strengthens AVG’s AntiVirus, content filtering, back-up and optimization portfolio, creating a best of breed platform to address small businesses’ real needs today and tomorrow.
- § From a technology perspective, the convergence of IT management and security is a natural evolution, particularly in the IT services market and the wider SMB market.
- § The combination of both reseller channels (AVG 10,000+ and LPI Platforms 1,500+) provides immediate and sustainable opportunities to cross-sell and upsell both portfolios to each partner base and scale the business globally.
Deal Terms and Financials
- § AVG expects to realize significant synergies by combining platforms and business operations, with the objective of making the acquisition accretive quickly.
AVG expects $5 million of subscription revenue related to the transaction in the second half 2013, which is expected to be neutral to non-gaap earnings. In 2014, subscription revenue is projected to be $15 million and non-GAAP EPS is projected to be in the range of 6-10 cents for this business.
