AVG Technologies opened up 31.4% on Thursday on news that their rival, the private company Avast Software, plans to acquire it in a $1.28B deal. Avast is offering $25 per share, which is 33% higher than AVG’s closing price on Wednesday of $18.77.

The deal comes not long after AVG announced their preliminary Q2 revenue results. AVG expects revenue to fall within the range of $104M to $106M compared to the Zacks Consensus Estimate of $108.6M.

According to Avast’s official statement, the acquisition is meant to allow them to “gain scale, technological depth and geographical breadth so that the news organization can be in a position to take advantage of emerging growth opportunities in Internet Security as well as organizational efficiencies.”

The combined company will have a network of “more than 400 million endpoints, of which 160 million are mobile.” Avast will finance the transaction using cash on hand as well as committed debt financing.

The boards of both companies have accepted the offer, and it is expected to close between September 15^th and October 15^th.

Analysts have not estimated AVG’s earnings estimate revisions in the last 60 days. Estimates for Q2 are currently at $0.42 per share with estimates for this fiscal year at $1.77 per share. This upward trend in estimates signals a positive outlook on AVG, highlighting the potential benefit it can provide Avast down the road.

AVG currently sits at a Zacks Rank #3 (Hold).

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