NortonLifeLock has reached an agreement to acquire rival Avast for up to USD 9.2 billion. The merger will create a new powerhouse in the consumer cybersecurity market, with over 500 million users.
The companies expect around USD 280 million in gross annual synergies from the merger. The increased scale of the merged group should also give them greater financial strength to invest in new products and adjacent markets.
NortonLifeLock CEO Vincent Pilette will remain head of the merged group, while Avast’s CEO Ondrej Vlcek is expected to join NortonLifeLock as President and become a member of the board of directors. In addition, Pavel Baudic, a co-founder and current director of Avast, is expected to join the NortonLifeLock board as an independent director. The group will remain listed on Nasdaq, with dual headquarters in Prague, Czech Republic, and Tempe, Arizona.
Closing remains subject to approval from shareholders of both companies and regulators. The companies expect to complete the deal by mid calendar 2022.
NortonLifeLock will pay a combination of shares and cash, valuing Avast equity at USD 8.1-8.6 billion depending on the combination selected by shareholders. The enterprise value including debt is USD 8.6-9.2 billion. With the majority cash option, the price values Avast shares at 21 percent more than when talk of a deal first emerged in mid-July.
Avast shareholders are expected to hold 14-26 percent of the new company, depending on the amount of shares chosen for payment. Avast directors and founders have already committed around 36 percent of the company's stock to the deal.
