REVEALED: Terms of Merger Between NortonLifeLock and Avast

NortonLifeLock has revealed that it is buying Avast in a deal that values the Czech-based and London stock exchange-listed company at up to $8.6 billion (£6.2 billion), following rumours of merger discussions last month. The businesses claim that their merged operation would service more than 500 million cybersecurity clients, including about 40 million direct consumers, in a joint statement.

Vincent Pilette, Chief Executive Officer of NortonLifeLock said: “This transaction is a huge step forward for consumer Cyber Safety and will ultimately enable us to achieve our vision to protect and empower people to live their digital lives safely. With this combination, we can strengthen our Cyber Safety platform and make it available to more than 500 million users. We will also have the ability to further accelerate innovation to transform Cyber Safety.”

The deal is seen as an opportunity to create a new, industry-leading consumer cyber safety business, building on the established brands, technology, and innovation of both groups to deliver benefits to consumers, shareholders, and other stakeholders.

Under the terms of the merger Avast shareholders will be entitled to receive a combination of cash consideration 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 boards of NortonLifeLock and Avast believe that the merger has a compelling strategic and financial rationale and represents an attractive 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.

Ondřej Vlček, Chief Executive Officer of Avast said: “At a time when global cyber threats are growing, yet cyber safety penetration remains very low, together with NortonLifeLock, we will be able to accelerate our shared vision of providing holistic cyber protection for consumers around the globe. Our talented teams will have better opportunities to innovate and develop enhanced solutions and services, with improved capabilities from access to superior data insights. Through our well-established brands, greater geographic diversification, and access to a larger global user base, the combined businesses will be poised to access the significant growth opportunity that exists worldwide.”

NortonLifeLock is a global leader in consumer Cyber Safety, and Avast is also a global leader in digital security and privacy.