NortonLifeLock rose 3% after the end-to-end cybersecurity company announced its intention to acquire Avast Software for $ 8.6 billion, followed by a merger.
Avast shareholders will have the opportunity to receive a partial proportionate share of the shares and a partial buyback by the company for “cash”. As a result, according to forecasts of experts, the current shareholders of Avast will become owners of 14 to 26% of the shares of the combined business, depending on the choice of shareholders in favor of “share” or money.
Founded in Prague (Czech Republic), Avast Software is a pioneer of the so-called. freemium type. In this case, users have access to the basic functions of the program, and subscribers pay for additional features. At the end of 2020, the company had 435 million active users, of which 16.5 million preferred to subscribe. In mid-July, the company had a market capitalization of over $ 7 billion.
The “unified” NortonLifeLock will have over 500 million users worldwide. The new business will be CEO of the current head of Norton, Vincent Pilette, and the president of Avast, Ondrej Vicek. The company will have two headquarters – in Prague and American Tempe (Arizona).