Software company Avast has announced the purchase of Anti-Virus software provider and competitor AVG for $1.3 billion dollars. As per the deal, Avast will purchase all the outstanding ordinary shares of AVG for $25.00 per share in cash.

Avast and AVG are both based in the Czech Republic and provide anti-viral software technology for desktop and mobile devices. The acquisition indicates the software giant’s intention to become serious competition for other leading anti-viral companies, using the combined technologies to further its market share and the effectiveness of its technology in the industry.

Avast said the deal is meant to "gain scale, technological depth and geographical breadth," and that it aims to "take advantage of emerging growth opportunities in Internet security as well as organizational efficiencies."

With a combined network of more than 400 million “endpoints,” or devices that use their software, 160 million of which are mobile users, both Avast and AVG will be able to provide information on a wide range of malware, which will help detect, fight and eradicate new threats, a growing problem in the world today. The more endpoints an anti-viral software company has, the better it is able to spot new viruses and trends in viral hacks, which helps companies as well as individuals. Even large companies like Sony Entertainment and Target were not immune to the hackers who targeted their organizations.

Avast said the deal will expand the provider's reach in Internet security and help it expand into emerging markets including Internet of Things (IoT) security, which has been a growing yet elusive problem. As more objects (devices, vehicles, even buildings) gain interconnection through technology, it also brings about a greater security risk for valuable data.

The acquisition enables both companies to share information between each other, which was previously not possible. The deal will also give Avast access to AVG’s Zen mobile technology for controlling the protection of all devices owned and operated by a family from just one device.

This happened alongside speculation that Intel may be about to sell the security business that it built around McAfee, a 2011 acquisition, according to PC World. Perhaps Avast is considering expanding its business even further.

AVG CEO Gary Kovacs said in a statement: "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.”