NortonLifeLock, a US cybersecurity company, has announced that it will acquire British competitor Avast to build a global consumer security powerhouse.Avast stockholders will receive cash and shares. The deal is valued at between $8.1 billion and $8.6 billion. This agreement comes only weeks after the companies had confirmed that they were in advanced talks about combining the two brands. This merger is the third largest cybersecurity acquisition ever made, after Thoma Bravo's $12.3 billion purchase of Proofpoint and Broadcom's $10.7 billion acquisition Symantecs enterprise company.NortonLifeLock was formed in 2019 by Symantec as a spinoff of Symantec. It is a result of the Symantec merger. The deal will create a market-leading consumer cyber safety company, unlock approximately $280m annual gross cost synergies and significantly expand its user base thanks to Avast's 435 million strong customer base.Vincent Pilette, CEO of NortonLifeLock, stated that this combination will allow us to strengthen our cyber safety platform, making it more accessible to over 500 million users. This transaction is a significant step forward in consumer cyber safety. It will allow us to realize our vision of protecting and empowering people to live digitally safe lives.Avast was founded in 1988 and focuses on cybersecurity software that can be used by consumers as well as small and medium-sized companies. It is considered one of the most important security companies. During its nearly 25-year history, however, Avast has faced many problems. Jumpshot, Avast's marketing technology subsidiary was forced to close last year after it was discovered that it was selling web browsing data that could potentially be linked to individuals.The companies stated that Pilette will continue to be the CEO of NortonLifeLocks, while Ondrej Vlcek, Avast CEO, will become president.Vlcek stated that our talented teams will have greater opportunities to innovate and create enhanced solutions and services. They also have access to better data insights and improved capabilities. The combined businesses will have greater access to the global growth opportunities because of our established brands, greater geographical diversification, and better access to more users.Although the final name of the combined company is yet to be decided, NortonLifeLock has confirmed that it will be dual-headquartered in Tempe, Arizona and the Czech Republic. It will also seek to reduce its workforce from 5,000 to approximately 4,000 employees over the next two year. The Nasdaq will list the combined company, instead of Avasts' current London Stock Exchange home.This deal was confirmed only weeks after NortonLifeLock purchased Avira antivirus provider for 360 million. It is expected to close by mid-2022.
