Jul 15, 2021 11:28:00

Will the developer of the long-established security software 'Norton' acquire 'Avast' for more than 880 billion yen?

by

Tony Webster

It is reported that Norton LifeLock (former company name: Symantec) , a security company that provides security software 'Norton 360 ', is in talks to acquire Avast Software (Avast) , which is known for its antivirus software ' Avast Antivirus'. I did. The move suggests that NortonLifeLock, which sold its corporate security business in 2019 and relaunched as a consumer business, will focus more on consumer software.

NortonLifeLock in Talks to Buy Avast --WSJ
https://www.wsj.com/articles/nortonlifelock-in-talks-to-buy-avast-11626287085

UK-based cybersecurity firm Avast in merger talks with NortonLifeLock | Reuters
https://www.reuters.com/article/us-avast-ma-nortonlifelock-idUSKBN2EK2C5

According to the Wall Street Journal of foreign media, Avast admitted on July 14, 2021 that a cash and stock acquisition negotiation was underway with NortonLifeLock. Avast shares, based in Prague, Czech Republic, are traded on the London Stock Exchange and have a market value of approximately $ 7.2 billion. The Wall Street Journal said the final acquisition could exceed $ 8 billion, given the extras at the time of the acquisition ( acquisition premium).

According to Avast, NortonLifeLock will need to make a clear takeover offer by August 11, 2021 in accordance with the UK Takeover Code. A person familiar with the matter told The Wall Street Journal that if the deal goes smoothly, the deal could be completed by the end of July instead of waiting for August.

Avast's roots were in 1988 in the then-socialist Czechoslovak Socialist Republic , where Eduard Kučera and Pavel Baudiš founded the antivirus software co-operative Alwil. After that, when the dictatorship of the Communist Party collapsed in the Velvet Revolution in 1989 and became a capitalist state, it changed to a joint venture in 1991. The two founders still hold a 35% stake in Avast and are on the board of directors.

Avast, which has gained a presence in the field of antivirus software, refused to accept an acquisition offer from McAfee in 1997 and instead licensed an antivirus product. As of 2020, it has 435 million users worldwide, and its annual revenue was about 883 million dollars (about 98.1 billion yen).

Meanwhile, NortonLifeLock, based in Arizona, USA, was once known as Symantec. In 2019, Symantec sold its enterprise business to Broadcom for $ 10.7 billion. After changing the company name to Norton LifeLock, it sells consumer products such as the Norton 360, with a market value of $ 16 billion.

The successful acquisition of Avast by NortonLifeLock is expected to give further impetus to consumer software sales. NortonLifeLock's share price fell 4% after the Wall Street Journal reported on the deal.