Security software company Avast Software announced Thursday that it will buy AVG Technologies for $1.3 billion in cash, hoping to create more technically advanced personal security and privacy products.

Avast said in a statement that the company will offer to purchase all of the outstanding ordinary shares of AVG for $25 per share, which is reportedly 33 percent above AVG’s closing price Wednesday on the New York Stock Exchange.

“We are in a rapidly changing industry, and this acquisition gives us the breadth and technological depth to be the security provider of choice for our current and future customers,” Avast Software CEO Vince Steckler said, “Combining the strengths of two great tech companies, both founded in the Czech Republic and with a common culture and mission, will put us in a great position to take advantage of the new opportunities ahead, such as security for the enormous growth in IoT [Internet of Things].”

This transaction was unanimously approved by the Management Board and Supervisory Board of Avast, the statement said. The new organization will have a network of more than 400 million endpoints of which 160 million are mobile. Avast is looking to use AVG’s technology to tap into the mobile malware security market.

“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,” AVG’s CEO Gary Kovacs said.

The maker of security and privacy products for PC, Mac, Android and iOS, Avast Software is backed by global private equity and investment advisory firm CVC Capital Partners. AVG -- in addition to providing internet security, performance optimization, and privacy and identity protection for mobile devices and desktops -- also provides cloud security and remote monitoring and management (RMM) solutions for small and medium businesses.

Avast software, which reportedly has over 230 million consumers worldwide, plans to fund the transaction using cash on hand and debt financing from third party lenders. Avast has received financing commitment of $1.685 billion from Credit Suisse Securities, Jefferies and UBS Investment Bank, it said.