(RTTNews) - Computer security giant NortonLifeLock Inc. (NLOK) has reached a deal to buy rival Avast Software B.V. in about $8 billion deal.
Under the terms of the deal, Avast shareholders will receive a combination of cash and newly issued shares in NortonLifeLock.
Based on NortonLifeLock's closing share price of $27.20 on July 13, 2021, the merger values Avast's share capital between about $8.1 billion and $8.6 billion.
The boards of NortonLifeLock and Avast believe that the merger has compelling strategic and financial rationale and represents an attractive opportunity to create a new, industry-leading consumer Cyber Safety business, leveraging the established brands, technology and innovation of both groups to deliver substantial benefits to consumers, shareholders, and other stakeholders.
"This transaction is a huge step forward for consumer Cyber Safety and will ultimately enable us to achieve our vision to protect and empower people to live their digital lives safely," said Vincent Pilette, Chief Executive Officer of NortonLifeLock. "With this combination, we can strengthen our Cyber Safety platform and make it available to more than 500 million users. We will also have the ability to further accelerate innovation to transform Cyber Safety."
According to Avast, it has more than 435 million users currently. The company was founded by Pavel Baudiš and Eduard Kucera in 1988 as Alwil and the duo holds 35% of the company's stake. The company went public in 2018 on the London stock exchange after changing its name to Avast in 2010. CVC Capital Partners held 23% of the company shares when it went public. Avast reported an $893 million revenue in 2020.
Norton on the other hand is a $16 billion company that has recently sold its enterprise-security business to Broadcom Inc. in 2019 for $10.7 billion.
Following the completion of the merger, NortonLifeLock's CEO Vincent Pilette will remain CEO, NortonLifeLock's CFO Natalie Derse will remain CFO, and Avast's CEO Ondrej Vlcek is expected to join NortonLifeLock as President and become a member of the NortonLifeLock Board of Directors.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.