Avast and NortonLifeLock are competitors in the consumer antivirus industry. Both of these consist of antivirus and VPN products but there are dissimilarities. Avast is good for its free antivirus offering and computer performance software, while NortonLifeLock has a large identity protection presence. But with this merger, Avast’s focus will be on privacy and Norton Life Lock’s experience in identity.
The boards of the two companies, with recommendation from a press release, believe that the merger will have a compelling strategy and would represent appealing opportunities for a new business to establish brands, technical skills and transform both groups. Also, NortonLifeLock cited in the press release that they would extend their geographic heterogeneity and ease the augmentation SOHO [small office/home office] or VSB [very small business] segments.
The Merger Strategic And Financial Benefits
An announcement on Tuesday said that NortonLifeLock is planning to merge with Avast for a deal worth more than $8 billion. It is also being said that the name of the merger would be declared yet and it is expected to see the complete merger in mid-2022. The merger will bring up the following updates.
- According to the announcement, they will be serving 500 million users, including the 40 million direct customers.
- With this, NortonLifeLock would be acquiring all Avast’s shares to create a larger cyber security firm. Vincent Pilette, NortonLifeLock CEO said that this combination would strengthen the cyber safety platform and make it available to more than 500 million.
- Hanging on to the shareholder election, Avast shareholders will own shares between 14% and 26% of the newly merged company and will be valued between $8.1 and $8.6 billion, said the announcement.
- Create a significant value in the market via approximately $280 million of annual gross cost alliance.
- Coming together of two well built and highly experienced consumer-focused management teams.
Organization And Management
The Avast CEO Ondrej Vlcek, on completion of the merger, would be joining NortonLifeLock as the president. Alongside, the Avast co-founder and board member Pavel Baudiš may join the NortonLifeLock board as an independent director. Meanwhile, NortonLifeLock CEO Vincent Pilette and CFO Natalie Derse would remain in their positions with the new company.
The management discussed the transaction details on a conference call on August 10, 2021. Here is the webcast link for your follow up.
About The Companies
Avast was founded in Czech Republic and has been generating software for customers and small businesses for around 11 years, and obtained AVG five years ago. NortonLifeLock was a former customer of Symantec, which was left behind after Broadcom gained Symantec’s security business two years ago. Norton antivirus has existed in various forms since 1991, and has remained a popular choice of customers consistently for 30 years.