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

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

In a joint press release write the companies 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 still depends on 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, premier, consumer-focused cybersecurity business.” After the merger, 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. Avast’s CEO is expected to join NortonLifeLock as president and member of the board of directors. The current president 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, 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 existed since 1988 and 1997 respectively. NortonLifeLock was previously the consumer arm of Symantec. That part remained 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 name Symantec, after which the name NortonLifeLock was adopted.