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US cybersecurity firm NortonLifeLock has confirmed it is buying British rival Avast to create a global consumer security powerhouse.
The deal, which comes just weeks after the two companies confirmed they were in advanced talks about a possible combination of the two brands, will see Avast shareholders receiving cash and shares that value the deal. between $ 8.1 and $ 8.6 billion. This makes the merger the third largest cybersecurity acquisition of all time, following Thoma Bravo’s $ 12.3 billion buyout of Proofpoint and Broadcom’s $ 10.7 billion acquisition of corporate operations. from Symantec.
NortonLifeLock, formed in 2019 as a spin-off of Symantec, says the deal will create an industry-leading consumer cybersecurity company, unlock approximately $ 280 million in annual gross cost synergies and significantly increase the number of users thanks to Avast’s 435 million customers. based.
“With this combination, we can strengthen our cybersecurity platform and make it available to over 500 million users,” NortonLifeLock CEO Vincent Pilette said in a statement. “This transaction is a big step forward for consumer cybersecurity and will ultimately enable us to achieve our vision to protect and enable people to live their digital lives safely. “
Avast, founded in 1988, focuses on cybersecurity software for consumers and small and medium businesses and describes itself as one of the largest security companies. However, the company has not been without controversy over its nearly 25-year history; Avast was forced to shut down its marketing technology subsidiary Jumpshot last year after discovering it was peddling web browsing data that could be linked to individual users.
Once NortonLifeLock’s acquisition of the company is completed, Pilette will remain CEO of the new company, while Avast CEO Ondrej Vlcek will become chairman and join the board, the companies said.
“Our talented teams will have better opportunities to innovate and develop improved solutions and services, with enhanced capabilities to access superior data insights,” said Vlcek. “With our well-established brands, greater geographic diversification and access to a broader global user base, the combined businesses will be poised to access the significant growth opportunity that exists around the world. “
The final name of the merged company has not yet been determined, but NortonLifeLock has confirmed that it will have two headquarters in the Czech Republic and Tempe, Arizona, and will seek to reduce its number of employees from 5,000 to around 4,000 over the next two years. The combined company will be listed on the Nasdaq, rather than on Avast’s current stock exchange on the London Stock Exchange.
The deal, which was confirmed just weeks after NortonLifeLock bought free antivirus provider Avira for £ 360million, is expected to close in mid-2022.
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