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.
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.”
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.”
The merger will also enhance the financial profile of the combined company through increased scale, long-term growth, cost synergies with reinvestment capacity and strong cash flow generation supported by a resilient balance sheet and is expected to drive double-digit EPS accretion within the first full year following completion and double-digit revenue growth in the long-term.
The main benefits will be:
- Accelerated transformation of consumer cyber safety with over 500 million users
- Combined strength in privacy and strength in identity, creating a broad and complementary product portfolio, beyond core security and towards adjacent trust-based solutions
- Strengthened geographic diversification and facilitated expansion into the SOHO / VSB segments
- Unlocked significant value creation through approximately USD 280 million of annual gross cost synergies1, with additional upside potential from new reinvestment capacity for innovation and growth;
- Bringing together two strong and highly experienced consumer-focused management teams.
Following the completion of the transaction, NortonLifeLock’s CEO, Vincent Pilette, will remain CEO, NortonLifeLock’s CFO, Natalie Derse, will remain CFO, and Avast’s CEO, Ondřej Vlček, is expected to join NortonLifeLock as President and become a member of the NortonLifeLock Board of Directors. In addition, Pavel Baudiš, a co-founder and current director of Avast, is expected to join the NortonLifeLock Board as an independent director. On completion of the merger, the combined company will be dual headquartered in Prague, Czech Republic, and Tempe, Arizona, USA, and will have a significant presence in the Czech Republic. The combined company will be listed on NASDAQ.