When Enterprise Investors invested in AVG Technologies (then Grisoft) in 2005, the Czech company was well known for its anti-virus software and had around 25 million users but needed help to expand.
EI supported the company’s development by strengthening the management team, expanding through a series of acquisitions and investing in new products. The result is that AVG has seen a 7.5x increase in the number of active users (to approximately 187 million in 2014) and generated sales of over US$400m in 2013. EI also helped the company list on the New York Stock Exchange, raising US$64m in new capital. AVG is now a leading provider of software and online services for consumers and small businesses with a range of solutions, from desktop, laptop and mobile security software to dynamic secure internet search. EI fully exited the business in August 2014.
What did the business need?
- A new management team to build a global market leader
- New competences and products to gain market share and stay ahead of the competition
- Global reach
How did private equity backing create lasting value?
- Introduced a new management team with global experience
- Supported transformation from a regional to a global player
- Helped identify and acquire companies to build new services and expertise
- Invested to expand product range beyond the original anti-virus software
- Helped create strong corporate structure and solid financial track record
- Provided necessary support to list AVG on the prestigious New York Stock Exchange
What outcomes did private equity investment achieve?
- Created a global market leader worth US$1bn in a highly competitive market
- Grew from an anti-virus software company to a leader in a range of security and online services
- Increased sales from $21m in 2005 to $407m in 2013
- Increased user numbers by 7.5x to 187m in 2014