NortonLifeLock and Avast in merger talks

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Mumbai: NortonLifeLock has confirmed that UK based cybersecurity firm Avast is in merger talks with the company.

“It is in advanced discussions with the board of Avast regarding a possible combination of NortonLifeLock and Avast,” NortonLifeLock formerly known as Symantec said in a statement.

The confirmation comes after, UK-based cybersecurity firm Avast had announced that it was in advanced talks over a merger with NortonLifeLock. Avast develops antivirus software for Microsoft Windows, macOS, Android and iOS. It offers free as well as premium antivirus software to users globally.

“NortonLifeLock and Avast would bring together two companies with aligned visions, highly complementary business profiles and a joint commitment to innovation that helps protect and empower people to live their digital lives safely,” the global consumer safety company said.

“We would draw on the best of both companies to ensure that the combination would benefit our customers, reward our employees and maximise long term value for all shareholders,” the company added.

The possible merger deal will likely have a mix of cash and share components as the Tempe, Arizona headquartered company has stated in the statement.

“The possible combination may be implemented by way of a cash and share offer by NortonLifeLock for the entire issued and to be issued share capital of Avast but, pursuant to Rule 2.5 of the City Code on Takeovers and Mergers (the “Code”), NortonLifeLock reserves the right to vary the form and/or mix of the consideration.”

Further, “This announcement does not amount to an announcement of a firm intention to make an offer under Rule 2.7 of the Code. There can be no certainty that any firm offer for Avast will be made nor as to the terms on which any firm offer might be made,” the statement said.

Though both companies have confirmed their merger talks, they haven’t yet disclosed the worth of this possible merger deal. Given that Avast’s market value is over $7 billion if the merger talks materialise then NortonLifeLock may pay over $8 billion to close this deal, as per the media report.

According to UK’s Takeovers and Mergers Code, NortonLifeLock has time until August 11 to make a firm offer to Avast.

(Image source – TheStreet)

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