NortonLifelock and Avast Merge in $8.1 Billion Deal

NortonLifeLock to Acquire Avast, Forming Cybersecurity Giant

U.S.-based cybersecurity company NortonLifeLock has officially announced its acquisition of its British competitor, Avast. This strategic move aims to establish a leading global provider of consumer security solutions.

Deal Details and Financial Implications

The agreement follows recent advanced discussions between the two organizations. Avast shareholders will receive a combination of cash and stock, valuing the transaction between $8.1 billion and $8.6 billion.

This merger ranks as the third-largest cybersecurity acquisition recorded to date. It trails behind Thoma Bravo’s $12.3 billion acquisition of Proofpoint and Broadcom’s $10.7 billion purchase of Symantec’s enterprise division.

Synergies and Expanded Reach

NortonLifeLock, originating as a 2019 spin-off from Symantec, anticipates the deal will generate roughly $280 million in annual gross cost synergies.

A significant benefit will be the expansion of NortonLifeLock’s user base, leveraging Avast’s substantial 435 million customers.

Executive Leadership and Vision

“By uniting our strengths, we can fortify our cyber safety platform and extend its benefits to over 500 million users,” stated Vincent Pilette, CEO of NortonLifeLock. “This represents a major advancement in consumer cyber safety, enabling us to realize our goal of safeguarding and empowering individuals in their digital lives.”

Ondrej Vlcek, the current CEO of Avast, will assume the role of president and join the board of the newly formed company, while Vincent Pilette will continue as CEO.

Avast’s History and Past Controversies

Founded in 1988, Avast specializes in cybersecurity software for both individual consumers and small to medium-sized businesses. It is recognized as a major player in the security industry.

However, Avast has faced scrutiny in the past. The company was compelled to discontinue its marketing technology arm, Jumpshot, after revelations concerning the sale of user web browsing data potentially traceable to individuals.

Future Outlook and Operational Changes

Vlcek commented, “Our combined teams will benefit from enhanced opportunities for innovation and the development of superior solutions, fueled by access to improved data insights.”

He further added, “Through our established brands, broader geographic presence, and access to a larger global user base, the merged entity will be well-positioned to capitalize on the significant growth potential worldwide.”

Company Structure and Listing

The final corporate name remains undecided. However, NortonLifeLock has confirmed dual headquarters in the Czech Republic and Tempe, Arizona.

The combined workforce is projected to decrease from 5,000 to approximately 4,000 employees over the next two years. The company will be listed on the Nasdaq exchange, shifting from Avast’s current listing on the London Stock Exchange.

Timeline and Recent Acquisitions

This acquisition follows NortonLifeLock’s recent purchase of free antivirus provider Avira for £360 million. The completion of the Avast acquisition is anticipated in mid-2022.