The US-based NortonLifeLock announced the purchase of the Czech cyber company – Avast in a deal that could reach $8.6 billion. Through this, NortonLifeLock is getting access to one of the largest customer bases in the industry.
Upon the deal, Avast stockholders will receive a combination of cash consideration and newly issued shares in the Tempe, Arizona-based company. NortonLifeLock CEO Vincent Pilette stated: "With this combination, we can strengthen our cyber safety platform and make it more available to more than 500 million users. We will also have the ability to further accelerate innovation to transform cyber safety."
The agreement announcement had come before Avast reported revenues of $471.3 million for the first half of the year, topping the $462.3 million estimated by analysts.
After the merger, the combined companies' shares will be listed on the Nasdaq in the US, dealing a blow to stock exchanges in London and Prague.
At the moment of writing, Avast stock price was trading 2.78% higher, while NortonLifeLock was up 4.80%.
Sources: finance.yahoo.com, Bloomberg.com, reuters.com