Avast, Norton merger to create global leader - Avast CEO

Prague/New York, Aug 11 (CTK) - The merger of supranational cybersecurity firm Avast of Czech origin and US firm NortonLifeLock will be completed in 9 to 10 months and the successor company will bear a new name, Avast CEO Vlcek said at an online press conference today.

NortonLifeLock has agreed to take over Avast for up to USD8.6bn (about Kc186.3bn), according to US paper The Financial Times.

The merger of Czech cybersecurity firm Avast and US software firm NortonLifeLock will give rise to a global cybersecurity leader that will combine Avast's strength in privacy protection and Norton's strength in identity protection, Vlcek said in a press release after the merger announcement.

Before the closing of the merger, general meetings of both companies have to take place and regulatory approvals in the countries where the firms operate have to be obtained, Vlcek said at the press conference this morning.

"This is why we expect the merger to be closed around the middle of next year. Until then, both firms will operate independently," Vlcek said.

Thanks to the merger, savings in gross expenses in the amount of about USD280bn (about Kc6bn) will be achieved, Vlcek said.

The merger will also create potential synergies on the revenue side flowing from opportunities on new markets, he added.

"We plan to use them (the savings) partly to fund new investment projects worth USD80-100m (Kc1.7-2.2bn), mainly in research and development, innovations and business growth," Vlcek said.

The merger will give rise to one of the 20 largest software companies in the world. Avast's current shareholders will own 14-26 percent of the new firm, Vlcek said.

The new company will be based in Prague and Tempe, Arizona. It intends to offer services to more than 500 million users.

Both firms first announced their talks on a merger in July. In a joint statement on Tuesday night, they said Avast shareholders would be offered a combination of monetary compensation and new shares of NortonLifeLock.

Both companies have the vision of a joint platform, NortonLifeLock CEO Vincent Pilette said.

Avast was set up in 1988 and its shares are traded on the Prague and London stock exchanges. It is one of the pioneers in cybersecurity.

Avast employs over 1,700 people and its products are used by more than 435 million users all over the world, partly free of charge. It blocks 1.5 billion cyberattacks a month.

Avast founders currently hold about 35 percent of the firm.

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