08-11-2021 , 04:45 AM
https://www.zdnet.com/article/nortonlife...ansaction/ NortonLifeLock and Avast PLC to merge in $8.4 billion transaction
The two companies said they will create a "new, industry-leading consumer Cyber Safety business."
By Tiernan Ray | August 10, 2021 -- 21:12 GMT (14:12 PDT) | Topic: Security
Antivirus vendor NortonLifeLock this afternoon said it will merge with Britain's Avast PLC in a transaction combining cash and stock in two different options, totaling between $8.1 billion and $8.6 billion in stock.
That value is roughly equivalent to the value in U.S. dollars of Avast's enterprise value, which takes into account its cash and debt, of £6.5 billion, based on the closing price of Avast stock tuesday of £5.68 on the London Stock Exchange.
NortonLifeLock shares rose 2.5% in late trading.
The two companies said in the joint press release that their respective boards of directors see an opportunity to "create a new, industry-leading consumer Cyber Safety business, leveraging the established brands, technology and innovation of both groups to deliver substantial benefits to consumers, shareholders, and other stakeholders."
The two companies said the deal will bring together product lines that are broadly complementary, while giving the combined company a user base of over half a billion customers. The deal will broaden the geographic market coverage of the combined company. In addition, the two expect to realize "$280 million of annual gross cost synergies."
Under terms of the deal, "Avast shareholders will be entitled to receive a combination of cash consideration and newly issued shares in NortonLifeLock with alternative consideration elections available."
Based on NortonLifeLock's closing share price of USD 27.20 on July 13, 2021 (being the last trading day for NortonLifeLock shares before market speculation began in relation to the merger on July 14, 2021, resulting in the commencement of the offer period), the merger values Avast's entire issued and to be issued ordinary share capital between approximately USD 8.1B and USD 8.6B, depending on Avast shareholders' elections.
In a companion deck of slides, the two companies detail two options for shareholders. Option one is to receive 31% of the deal in cash and 69% in stock, option two is to receive 90% in cash and 10% in stock.
The two companies said they will create a "new, industry-leading consumer Cyber Safety business."
By Tiernan Ray | August 10, 2021 -- 21:12 GMT (14:12 PDT) | Topic: Security
Antivirus vendor NortonLifeLock this afternoon said it will merge with Britain's Avast PLC in a transaction combining cash and stock in two different options, totaling between $8.1 billion and $8.6 billion in stock.
That value is roughly equivalent to the value in U.S. dollars of Avast's enterprise value, which takes into account its cash and debt, of £6.5 billion, based on the closing price of Avast stock tuesday of £5.68 on the London Stock Exchange.
NortonLifeLock shares rose 2.5% in late trading.
The two companies said in the joint press release that their respective boards of directors see an opportunity to "create a new, industry-leading consumer Cyber Safety business, leveraging the established brands, technology and innovation of both groups to deliver substantial benefits to consumers, shareholders, and other stakeholders."
The two companies said the deal will bring together product lines that are broadly complementary, while giving the combined company a user base of over half a billion customers. The deal will broaden the geographic market coverage of the combined company. In addition, the two expect to realize "$280 million of annual gross cost synergies."
Under terms of the deal, "Avast shareholders will be entitled to receive a combination of cash consideration and newly issued shares in NortonLifeLock with alternative consideration elections available."
Based on NortonLifeLock's closing share price of USD 27.20 on July 13, 2021 (being the last trading day for NortonLifeLock shares before market speculation began in relation to the merger on July 14, 2021, resulting in the commencement of the offer period), the merger values Avast's entire issued and to be issued ordinary share capital between approximately USD 8.1B and USD 8.6B, depending on Avast shareholders' elections.
In a companion deck of slides, the two companies detail two options for shareholders. Option one is to receive 31% of the deal in cash and 69% in stock, option two is to receive 90% in cash and 10% in stock.