AVG to Acquire Location Labs, Targets Mobile Security Market Growth

AVG Technologies (AVG) today announced it will acquire mobile security provider Location Labs in a deal that could be worth up to $220 million.

Location Labs is a privately held company that offers the Sparkle mobile platform for analytics, interactive maps and mobile device management (MDM) in the cloud.

The Location Labs acquisition is designed to accelerate AVG’s mobile security business, creating a global company that is expected to generate $60 million to $70 million in mobile bookings next year and around $100 million in mobile bookings in 2016.

“By joining together with Location Labs, AVG will deliver even further innovation in mobile security,” AVG Chief Strategy Officer Todd Simpson told MSPmentor. “Now, AVG and Location Labs customers can choose from multiple channels to access security apps, whether directly from app stores or through their network provider. This cross-platform strategy will directly accelerate both our user base growth and revenue opportunities.”

AVG said the acquisition also delivers “a proven innovative platform of personal security products for mobile devices and deep integration with global industry partners, including all four major mobile operators in the United States.”

“This acquisition significantly accelerates AVG’s mobile strategy,” AVG CEO Gary Kovacs said in a prepared statement. “According to industry estimates, the number of mobile-connected devices will exceed the world’s population by the end of this year alone. The combined existing mobile user base of both companies gives us the unprecedented opportunity to deliver online security to approximately a quarter of a billion devices as we see more people go mobile to get online.”

What does the Location Labs acquisition mean for AVG?

Stephanie Kane, AVG’s PR director, said the Location Labs acquisition could help her company expand its mobile business and address the goal of monetizing its mobile offerings.

“Location Labs offers consumer products which complement our own mobile portfolio and, brought together, will create a very compelling, competitive offering to both consumers and mobile providers,” she said. “Acquiring Location Labs enables us to accelerate our mobile strategy and focus on delivering increased value to shareholders.”

The acquisition also accelerates AVG’s move into mobile and supports its mobile monetization strategy, Kane said, because it establishes a comprehensive consumer mobile business to deliver global security to millions of devices and people.

“Location Labs does have deep integration with tier 1 mobile operators like AT&T, Sprint, T-Mobile, Telefónica and Verizon Wireless,” she added. “The combination of AVG and Location Labs creates a compelling value proposition for both the mobile carriers and the consumers they serve.”

Share your thoughts about this story in the Comments section below, via Twitter @dkobialka or email me at [email protected].