Summit Partners, the Boston-based private equity firm, is investing $100 million in Prague-based antivirus developer AVAST Software.

The company employs a ‘freemium’ business model, offering a free version of its service as well as a paid version that represents an upgrade for users. Chief executive Vince Steckler noted the strategy will not change following Summit's investment, which yielded the Boston firm a minority stake.

Steckler added that the capital infusion will likely not be used for M&A, citing that “virtually all of our technology has been developed in-house."

Summit is investing out of its 2008-vintage Europe-focused vehicle, Summit Partners Europe Private Equity Fund I, which corralled €1.05 billion in commitments two years ago.

The deal underscores the robust M&A activity in the security space. The industry giant, McAfee was sold to Intel last week in a $7.6 billion deal. Meanwhile, in the same week, Symantec completed its purchase of VeriSign's identity and authentication business and Hewlett Packard agreed to acquire application security outfit Fortify.

Analysts have also speculated that more deals are likely. JMP Securities hypothesized in a research note that the McAfee deal could put Symantec in play, while Commvault and Informatica could also represent appealing acquisition targets.

The Avast deal is likely a precursor to an initial public offering for the company. Steckler, in the last week of July, told Softpedia that an IPO represents a long-term goal for the company.

Technology