AVG Technologies NV, a Netherlands-based maker of Internet security software, has filed with U.S. regulators to raise up to $125 million in an initial public offering. The company has raised money from Intel Capital, Grisoft Holdings and private equity firm TA Associates.
(Reuters) – Internet security software maker AVG Technologies NV filed with U.S. regulators to raise up to $125 million in an initial public offering.
AVG, which is known for its free suite of antivirus products, monetizes its large user base through partnerships with search engine providers and through targeted advertisements and driving traffic to online search companies such as Google Inc and Yahoo Inc.
The Netherlands-based company, which is backed by Intel Capital, Grisoft Holdings and private equity firm TA Associates, had 106 million active users as of September 30, 2011, according to the filing.
But only 15 million users paid for its subscription services — bringing in $130.1 million in subscription revenue for the nine months ended September 30, 2011.
AVG reported net income of $99.7 million, on total revenue of $198.1 million for the nine-month period.
Yahoo accounted for 21.6 percent of the company’s total revenue in 2010, while Google contributed less than 10 percent of its revenue in the fourth quarter of the same year, the filing said.
The company, which plans to list on the New York Stock Exchange under the symbol “AVG,” competes with Symantec Corp and McAfee, which was acquired by Intel Corp.
The book-running managers for the AVG offering are Morgan Stanley & Co, J.P. Morgan Securities and Goldman Sachs & Co.
Last month, Avast Software BV, another Europe-based antivirus software maker, filed for a $200 million IPO.
The proposed offering is expected to consist of ordinary shares to be sold by AVG and certain selling shareholders. The filing did not reveal the number of shares to be sold in the IPO or their expected price.
The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO can be different.
(Reporting by Brenton Cordeiro and Himank Sharma in Bangalore; Editing by Sriraj Kalluvila)