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| Norton buys Avast for $8.6 billion |
NortonLifeLock will acquire Avast for approximately $8.6 billion, enabling the US cybersecurity company to gain access to one of the largest customer groups in the industry.
The companies said in a statement that Avast shareholders will receive cash and stock with a transaction value of between $8.1 billion and $8.6 billion.
Upon completion of the merger, NortonLifeLock CEO Vincent Billett will continue to serve as CEO and the company will have headquarters in Arizona and Prague.
The two companies said Avast CEO Ondrej Flicic became director and joined the board of directors.
Because of overlapping responsibilities, Norton said, about 1,000 jobs, or up to 25% of the combined company's jobs, would be at risk.
She added, "We have less than 5,000 employees. In the future, we will run the business on a scale of about 4,000. The layoffs affect both companies and will be implemented in all regions."
Advanced ransomware attacks against large companies and infrastructure providers have increased the demand for software that prevents hacker attacks.
The transaction significantly increased the number of NortonLifeLock (formerly Symantec) users. That was before the company sold its corporate security business to Broadcom for $10.7 billion in 2019.
Norton acquires Avast
Norton Antivirus has been around in various forms since 1991 and has been a popular choice among consumers for 30 years.
Avast, based in Prague, has 435 million free subscribers. It encourages customers to use basic free products and tries to use more advanced software to make them paying users.
The company has been providing programs to individuals and small businesses for 11 years and acquired AVG five years ago.
This integration will enable NortonLifeLock to improve its network security system and serve it to more than 500 million users. We also have the ability to accelerate innovation to change online security.
The two CEOs agreed that the proliferation of large-scale and destructive cyber attacks during the pandemic created new demand for digital security tools and allowed companies to compete for a greater share of cybersecurity revenue.
The integration is expected to result in antivirus products that include Avast's focus on privacy and the benefits of the NortonLifeLock Identity experience. At a time when network security is of paramount importance to consumers and businesses alike.