NortonLifeLock Cybersecurity is set to buy Avast rival. The deal was announced by the two giants on Wednesday and will involve a total of more than $ 8 billion (~ Rs. 59,560 crore).
With this, the two companies will work together to grow their consumer cyber security business.
The NortonLifeLock and Avast boards believe the merger will bring significant strategic and financial benefits to firms.
First, it will build a new consumer-led Cyber Safety business based on the technology developed and the number of products of both majors.
Vincent Pilette, chief executive officer of NortonLifeLock, explained that the merger would allow the two companies to strengthen Cyber Security “and make it available to more than 500 million users.”
It is also possible to speed up new things in space with their integrated resources.
Ondej Vlek, Avast’s chief executive officer, said the merger would allow both parties to improve “and develop improved solutions and services, with improved capabilities from achieving higher data comprehension.”
The collaboration will help the two to improve their geographical diversity and “reach the world’s largest users.”
In addition to this, the new conglomerate will also improve the corporate financial profile of the company by increasing cost-effectiveness interactions and re-investment capabilities.
Remunerative earnings are also expected to be strong, with double-digit revenue growth in the long run.
NortonLifeLock, Avast has announced a $ 8 billion joint venture
Once the merger is complete, Pillilette will act as CEO of the merger. Vlek, is expected to join NortonLifeLock as President and Board of Directors of NortonLifeLock. NortonLifeLock CFO, Natalie Derse, will remain CFO.
Pavel Baudi, co-founder and current director of Avast, is likely to join the NortonLifeLock Board as an independent director.
Once the agreement is finalized, the union will have two headquarters, one in Prague, Czech Republic, and one in Tempe, Arizona, USA. The merged company will be listed on the NASDAQ.
The management of both companies will discuss transaction details within hours from now.
It is easy to see how the merger, once completed, will make the conglomerate the largest consumer safety organization in the world.