Avast goes into NortonLifeLock after bid of more than $8 billion

NortonLifeLock and Avast to merge. Based on Avast’s $27.20 per share price as of July 13, the deal is worth between $8.1 billion and $8.6 billion.

In a joint press release, the companies write that Avast shareholders will receive a combination of cash and newly issued shares in NortonLifeLock. The deal is valued at between $8.1 and $8.6 billion; the exact amount is still subject to a vote among Avast shareholders.

According to the boards of directors of both companies, the merger is based on “irresistible strategic and financial considerations” and creates opportunities to “create a new, leading consumer-centric cybersecurity business.” After the merger, it says the security platform will be available to more than 500 million users. Both companies say they complement each other well, with Avast’s strength in ‘privacy’ and NortonLifeLock’s strength in ‘identity’.

NortonLifeLock’s current CEO and CFO will retain their positions. The CEO of Avast is expected to join NortonLifeLock as president and join its board of directors. The current director and co-founder of Avast is expected to join NortonLifeLock as an independent director.

When the merger is completed, the combined company will have two headquarters: one in Tempe, Arizona, USA and one in Prague. The companies write that there will be a significant presence in the Czech Republic. The combined company will be listed on the US Nasdaq.

Avast is a security company from the Czech Republic and took over the Czech AVG five years ago. These two companies have been in existence since 1988 and 1997 respectively. NortonLifeLock was previously the consumer arm of Symantec. That part was left after Broadcom took over the business part two years ago. After that acquisition by Broadcom, the consumer division was no longer allowed to use the Symantec name, after which the name NortonLifeLock was adopted.