An acquisition that capitalises on the increasing attention on smartphone security: AVG Technologies, a security software company based in Amsterdam, is buying Tel Aviv-based Android security app developer DroidSecurity, in a deal valued at $4.1 million with an additional $5.3 million earnout. The news comes as Google itself, and Android device makers like HTC, continue to improve security around the Android platform.
Israeli business news site Globes first reported the price for the deal, and added that it is being sold by VCs Maayan Ventures, which owns 39% of DroidSecurity. A group of private investors owns 20%, and DroidSecurity’s managers and employees own the rest. Maayan had invested only $100,000 in the company. (DroidSecurity had also received a $500,000 grant from the Office of the Chief Scientist’s Incubator Program, part of the country’s Ministry of Information and Trade.)
DroidSecurity, which sells a range of free and paid-for apps to secure Android smartphones, tablets and other devices, says it has had 4.5 million downloads of its apps to date; its free app ranks in the top-50 most popular apps in the Android Market (release).
AVG, meanwhile, has made most of its business up to now developing and selling desktop security software to consumers and small businesses. It says it has 110 million customers in 170 countries.
The blog Data Protection Center and Recovery points out that there has been increasing attention on breaching Android device security. Last week saw a vulnerability exposed on the Webkit platform, used to develop Android apps. Although Google (NSDQ: GOOG) fixed it in the latest Froyo release (2.2), only 36 percent of Android devices use Froyo, meaning that the remainder can still, in theory, be attacked.