AVG Technologies Acquires the Business of LPI Level Platforms
Acquisition furthers AVG’s vision for delivering cloud-based, cross platform
services to consumers and small business customers
AMSTERDAM -- June 12, 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 deliver the most comprehensive,
innovative, high quality and high performance platform for SMB’s and their
MSPs in 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” added John Giamatteo, Chief
Operating Officer of AVG Technologies. “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
*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
Deal Terms and Financials
*AVG expects to realize significant synergies by combining platforms and
business operations, with the objective of making the acquisition
*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
About LPI Level Platforms
LPI Level Platforms provides Managed Workplace®, the remote monitoring and
management software and services platform used by thousands of IT service
providers around the world to deliver comprehensive IT support to small and
midsized businesses. Level Platforms' hybrid agentless technology, extensive
management and automation features, deep integration into the IT ecosystem and
fully integrated white label support services, allow IT services providers to
remotely support all of the information technology products and services their
end customers rely on from a single web-based dashboard. "See All. Manage All.
Service All." For more information, visit www.levelplatforms.com.
About AVG Technologies (NYSE: AVG)
AVG’s mission is to simplify, optimize and secure the Internet experience,
providing peace of mind to a connected world. AVG’s powerful yet easy-to‐use
software and online services put users in control of their Internet
experience. By choosing AVG’s software and services, users become part of a
trusted global community that benefits from inherent network effects, mutual
protection and support. AVG has grown its user base to 150 million active
users as of March 31, 2013 and offers a product portfolio that targets the
consumer and small business markets and includes Internet security, PC
performance optimization, online backup, mobile security, identity protection
and family safety software.
Use of Non-GAAP Financial Information
This press release contains non-GAAP financial measures. The presentation of
this supplemental non-GAAP financial information, which is not prepared under
any comprehensive set of accounting rules or principles, is not intended to be
considered in isolation or as a substitute for, or superior to, the financial
information prepared and presented in accordance with generally accepted
accounting principles in the United States.
Because of these limitations, investors should rely on AVG's consolidated
financial statements prepared in accordance with U.S. GAAP and treat AVG's
non-GAAP financial measures as supplemental information only.
AVG is providing these non-GAAP financial measures because it believes that
such measures provide important supplemental information to management and
investors about AVG's core operating results, primarily because the non-GAAP
financial measures exclude certain expenses and other amounts that management
does not consider to be indicative of AVG's core operating results or business
outlook. AVG management uses these non-GAAP financial measures, in addition to
the corresponding U.S. GAAP financial measures, in evaluating AVG's operating
performance, in planning and forecasting future periods, in making decisions
regarding business operations and allocation of resources, and in comparing
AVG's performance against its historical performance.
This press release contains forward-looking statements within the Private
Securities Litigation Reform Act of 1995, including those relating to expected
synergies, subscription revenue and EPS contributions from the acquired
business. Words such as "expects," "expectation," "intends," "assumes,"
"believes", “projects” and "estimates", variations of such words and similar
expressions are also intended to identify forward-looking statements. These
forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from those contemplated herein. Factors
that could cause or contribute to such differences include but are not limited
to: changes in the acquired company's growth, future prospects, business
development, results of operations and financial condition; changes in the
cloud-based IT software environment and the endpoint security industry;
competition from local and international companies, new entrants in the market
and changes to the competitive landscape; the adoption of new, or changes to
existing, laws and regulations; flaws in the assumptions underlying the
calculation of the number of the acquired company's users; the termination of
or changes to AVG's relationships with its partners, including Google, and
other third parties; the ability to attract and retain active and subscription
users; the ability to retain key personnel and attract new talent; the ability
to adequately protect its intellectual property; the anticipated costs and
benefits of the acquisition; and worldwide economic conditions and their
impact on demand for AVG’s and the acquired company's products and services.
Given these risks and uncertainties, you should not place undue reliance on
these forward-looking statements.
Further information on these factors and other risks that may affect AVG's
business is included in filings AVG makes with the Securities and Exchange
Commission (SEC) from time to time, including its Annual Report on Form 20-F,
particularly under the heading "Risk Factors".
The financial information contained in this press release should be read in
conjunction with the consolidated financial statements and notes thereto to be
included in AVG's reports on Form 6-K and Form 20-F.
These documents are available online from the SEC or in the Investor Relations
section of AVG's website at http://investors.avg.com. Information on the AVG
website is not part of this release.
All forward-looking statements in this press release are based on information
currently available to AVG, and AVG assumes no obligation to update these
forward-looking statements in light of new information or future events.
Keep in touch with AVG
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Krause Taylor Associates for AVG Technologies
+ 1 (408) 981-7551
PR Director, SMB & Channel, AVG
+44 (0)7891 532371
+1 (415)217- 5864
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