15th Jul 2021 07:36
(Alliance News) - NortonLifeLock Inc and Avast PLC on Thursday confirmed they are in advanced talks regarding a possible combination.
A deal may be in form of a cash and share takeover offer by Norton for Avast, the two companies said. Possible terms were not disclosed.
The talks were first reported by the Wall Street Journal late on Wednesday. A deal could value Avast at around USD8 billion, assuming a typical premium to its closing market capitalisation of USD5.20 billion, the WSJ said.
Tempe, Arizona-based Norton makes consumer cybersecurity software, as does Avast, which is based in Prague and listed on the London Stock Exchange.
Under UK takeover rules, Norton will have to make a firm offer by August 11, or announce it will not make an offer.
"A combination of NortonLifeLock and Avast would bring together two companies with aligned visions, highly complementary business profiles and a joint commitment to innovation that helps protect and empower people to live their digital lives safely," Norton said.
NortonLifeLock shares fell 2.3% to USD26.29 in after-hours trading in New York, following the WSJ story.
By Ivan Edwards; [email protected]
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