WASHINGTON (dpa-AFX) - Computer security giant NortonLifeLock Inc. (NLOK) is in advanced talks to acquire rival Avast.
The Board of Avast confirms that it is in advanced discussions regarding a possible merger of Avast with Norton. The company is worth $7.2 billion in the present market but the deal might set Norton back more than $8 billion. However, the company has not specified any terms of the discussion.
According to Avast, it has more than 435 million users currently. The company was founded by Pavel Baudiš and Eduard Kucera in 1988 as Alwil and the duo holds 35% of the company's stake. The company went public in 2018 on the London stock exchange after changing its name to Avast in 2010. CVC Capital Partners held 23% of the company shares when it went public. Avast reported an $893 million revenue in 2020.
Norton on the other hand is a $16 billion company that has recently sold its enterprise-security business to Broadcom Inc. in 2019 for $10.7 billion.
After the massive malware infestations around the world, data security has come up at the forefront of business negotiations. Computer giants, Microsoft (MSFT) have planned to acquire RiskIQ to help the users assess the vulnerability of their websites.
However, while confirming the speculations, Avast did not shed any light on the standing of the deal. There can be no certainty as to whether any transaction will take place or the terms on which any possible merger may be agreed.
Avast also added that Norton will have to make their intentions clear by the end of August 11. Norton was also reportedly approached by McAfee in 1997.
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