Intel takes stake in Grisoft in Czech deal

PRAGUE (Reuters) - Intel Corp and private equity firm Enterprise Investors have acquired a majority stake in Czech anti-virus software developer Grisoft for US$52 million to help it expand and possibly go public, they said on Tuesday.

Intel's venture investment arm and Enterprise Investors, the self-proclaimed largest private equity firm in Eastern Europe, took a 65 percent stake in Grisoft in the biggest foreign investment in the Czech technology sector in years.

"As a result of this strategic transaction, both new investors will have a 65 percent ownership stake in Grisoft," Intel Capital and Enterprise Investors said in a statement.

Investment boutique Benson Oak sold the stake but retained 35 percent of Grisoft's shares.

Intel Capital put up US$16 million for the acquisition with Enterprise Investors paying the rest.

Founded in 1991 in the Czech Republic, Grisoft has focused on developing software protecting computers from malicious attacks and viruses. It has 25 million users across the world.

The new majority owners said an initial public offering (IPO) was an option to raise funds for future expansion. The firm has set its sights on selling its software in the United States and fast-growing Asian and Latin American markets.

"An IPO is clearly something that we want to take this company towards. When it happens and where it happens, we don't know yet," Ashish Patel, executive director with Intel Capital in Europe, Middle East and Africa, told a news conference.

"But at this stage, we do not particularly need to have an IPO to fund those expansion plans that we have in place. We believe Grisoft can do this pretty much on internal resources that they have," he added.

Intel, the world's largest computer-chip maker, has long invested in start-up companies it believes may spur faster growth in the technology sector. It has invested more than US$4 billion in about 1000 businesses since 1991.

Enterprise Investors is managing funds with capital exceeding US$1.1 billion and provided by major private European and US insurance companies, pension funds, banks and other financial institutions.

Its funds have invested more than US$950 million to about 100 companies in various countries in Central and Eastern Europe.