NortonLifeLock buys Avast in deal valued at around $ 8 billion

NortonLifeLock Inc. on Tuesday evening announced plans to acquire Czech Republic-based cybersecurity firm Avast PLC in a stock transaction the company values ​​more than $ 8 billion.

Based on its closing price of $ 27.20 on July 13 before rumors began to swirl, NortonLifeLock NLOK,
said the deal is valued between $ 8.1 billion and $ 8.6 billion according to Avast AVST,
+ 0.11%
shareholders’ elections.

NortonLifeLock shares rose more than 5% in after-hours activity, following a 1.1% gain in the regular session to close at $ 24.15, which would value the trade between 7. $ 19 billion and $ 7.64 billion, or $ 7.37 billion to $ 7.83 billion if the stock traded at its after-hours level.

“This transaction is a huge step forward for consumer cybersecurity and will ultimately enable us to realize our vision to protect and enable people to live their digital lives securely,” said Vincent Pilette, Managing Director of NortonLifeLock, in a press release. “With this combination, we can strengthen our cybersecurity platform and make it available to more than 500 million users. “

After the deal closes, NortonLifeLock will have two headquarters in Prague and Tempe, Arizona. The resulting company will be led by Pilette as CEO, and Avast CEO Ondřej Vlček is expected to be its chairman.

NortonLifeLock said it expects the deal to result in double-digit growth in earnings per share within a year and double-digit revenue growth over the long term.

In July, the Wall Street Journal reported that NortonLifeLock and Avast were in talks for a deal.

NortonLifeLock is the result of the $ 10.7 billion sale by Symantec Corp. of its corporate security activity at Broadcom Inc. AVGO,
+ 0.40%,
which closed on November 4, 2019.

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