Norton LifeLock is in talks to acquire Avast

NortonLifeLock, a security company that provides security software such as Norton360, formerly known as Symantec, is reportedly in talks to acquire Avast Software, formerly known as Avast Antivirus, an antivirus software, reports report. . This suggests Norton LifeLock, which sold off its corporate security business in 2019 and operated a private business, will focus on consumer software.

According to the report, Avast admitted on July 14, 2021 that Norton Life Lock was in talks for a cash-and-equity takeover. Based in Prague, Czech Republic, Avast shares are traded on the London Stock Exchange and have a market value of $7.2 billion. It is reported that the final acquisition price is likely to exceed $8 billion when the acquisition premium is taken into account.

According to Avast, Norton LifeLock will need to put a clear acquisition limit until 11 August 2021 under the UK tender offer rules. According to an official, if the acquisition negotiations go smoothly, there is a possibility that the acquisition transaction will be completed in July without waiting for August.

Avast’s roots come from the establishment of the Anti-Virus Software Cooperative (Alwil) in 1988 in the Socialist Republic of Czechoslovakia, which was still socialist at the time. After the revolution in 1989, the communist dictatorship collapsed and the country became a capitalist country, and in 1991 it was converted into a jointly managed enterprise. The two founders still own 35% of Avast’s stock and sit on the board.

Avast, which has increased its presence in the field of anti-virus software, was offered an acquisition by McAfee in 1997, but declined and offered an anti-virus product instead. As of 2020, it has 435 million users worldwide and annual revenue of $893 million.

Meanwhile, Norton LifeLock, based in Arizona, USA, was formerly known as Symantec. After selling its enterprise business to Broadcom for $10.7 billion in 2019 and changing its name to Norton LifeLock, Symantec has been selling consumer products, including the Norton 360, with a market value of $16 billion.

Norton LifeLock’s successful acquisition of Avast will boost consumer software sales. Norton LifeLock shares fell 4% after reports of the deal came out. Related information can be found here.