Consumer cybersecurity firms NortonLifeLock (NASDAQ: NLOK) and Prague-based Avast announced on Tuesday that the two firms have agreed to merge in a deal valued between roughly $8.1-$8.6 billion.
Under the terms of the agreement, Avast shareholders could receive a combination of cash and newly issued shares in NortonLifeLock, with alternative consideration elections available.
“Based on NortonLifeLock’s closing share price of USD 27.20 on July 13, 2021 (being the last trading day for NortonLifeLock shares before market speculation began in relation to the merger on July 14, 2021, resulting in the commencement of the offer period), the merger values Avast’s entire issued and to be issued ordinary share capital between approximately USD 8.1B and USD 8.6B, depending on Avast shareholders’ elections,” the announcement said.
The combined company will service more than 500 million users, with the merger creating roughly $280 million of annual gross cost synergies.
Following the completion of the transaction, NortonLifeLock’s CEO, Vincent Pilette, will remain CEO, NortonLifeLock’s CFO, Natalie Derse, will remain CFO, and Avast’s CEO, Ondřej Vlček, is expected to join NortonLifeLock as President and become a member of the NortonLifeLock Board of Directors.
The combined company will be dual headquartered in Prague, Czech Republic, and Tempe, Arizona, USA, and will have a significant presence in the Czech Republic. The combined company will be listed on NASDAQ.
The NortonLifeLock brand came as a result of Symantec Corp selling its enterprise security unit and Symantec brand to Broadcom for $10.7 billion in November 2019. In January 2020, Accenture announced that it had agreed to acquire Symantec’s Cyber Security Services business from Broadcom for an undisclosed sum.
In December 2020, NortonLifeLock announced that it would shell out $360 million in cash to snap up German anti-virus firm Avira.