NortonLifeLock to buy Avast for over $8 billion
About 1,000 jobs are at risk
US cyber security giant NortonLifeLock has announced that it is buying Czech rival Avast in a cash and stock deal, at a total value of more than $8 billion.
It is unclear what the new group will be called, but Avast and NortonLifeLock said in a joint press release that the merger will create a 'mega' IT security firm, devoted to protecting 500 million consumers from both companies.
The group will generate $3.5 billion in annual revenue.
The new company will be listed on the Nasdaq - as opposed to the London Stock Exchange, where Avast is currently listed - and operate through dual headquarters in Tempe, Arizona and Prague, Czech Republic.
The deal is expected to close in mid-2022, pending regulatory approval. Once it is complete, Avast CEO Ondrej Vlcek will become NortonLifeLock's new president and join the board, while Norton chief Vincent Pilette will serve as CEO of the expanded group.
The respective boards of directors of the two cyber security firms said they see the deal as an opportunity to 'create a new, industry-leading consumer Cyber Safety business, leveraging the established brands, technology and innovation of both groups to deliver substantial benefits to consumers, shareholders, and other stakeholders.'
The combined group hopes to tap a market of 5 billion internet users, while also focusing on creating products for small businesses.
UK-listed Avast has been offering both free and paid antivirus software for years, and has about 435 million 'freemium' subscribers. It offers a free, basic product to users and then tries to turn them into paying customers with more advanced software.
NortonLifeLock sells paid anti-identity theft and security products to consumers. The company was previously known as Symantec, before it sold its enterprise-security business to Broadcom in 2019.
According to Bloomberg, Pilette said in a call with reporters on Wednesday that about 1,000 jobs are at risk in the combined group, due to overlaps in responsibility.
"Combined, we have roughly a little bit less than 5,000 employees and we'll run the company moving forward at about 4,000," he said.
The job cuts will affect both firms and will be implemented across all geographies.
The Avast acquisition comes a few months after Norton bought German security firm Avira, for around $360 million in an all-cash deal.
Pilette said at the time that adding Avira would help NortonLifeLock to accelerate its overseas growth and "expand our go-to-market model with a leading freemium solution."