AVG has signed a definitive agreement to acquire privately-held mobile security company Location Labs. Under the terms of the deal, AVG will pay approximately $140 million initially, plus up to an additional approximately $80 million in cash consideration over the next two years based on the achievement of certain performance metrics and milestones.

The transaction is expected to close during the fourth quarter of 2014 and is subject to customary closing conditions, including AVG shareholder approval. Following the close of the acquisition, Location Labs CEO, Tasso Roumeliotis, will continue to lead the Location Labs business.