Two of the world's largest cybersecurity firms have confirmed that they are in advanced stages of merger talks.
Both Avast and NortonLifeLock released statements confirming their plans, but added there was no certainty that a deal would be agreed.
According to the Wall Street Journal, which first reported the talks, the merger between the Nasdaq-listed Norton, which is the larger of the two, would value the London-listed Avast at $8 billion.
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In a statement, NortonLifeLock said the deal would bring together “two companies with aligned visions”. Reuters argues that the combination of the two vendors would create a clear leader in consumer security software.
Sign of the times
The recent spate of cyber attacks on businesses, along with the shift towards hybrid work environments, has had a positive impact on the bottom-line of security companies.
Remote working has spurred demand for Avast’s desktop products such as its antivirus software, which has helped the company record a 7.1% organic growth in adjusted billings to $922 million last year, according to Reuters.
Avast’s freemium software reportedly had 435 million active users at the end of 2020, of which 16.5 million paid for premium add-ons. NortonLifeLock, previously known as Symantec Corp, before it sold its enterprise-security business to Broadcom in 2019, has a wider portfolio of products that also includes identity theft protection services.
Norton has until the second week of August to make its final offer to Avast, adds Reuters.
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Via Reuters
