Solely eight months after getting acquired for $180 million, Avira is altering palms once more, for double the worth: NortonLifeLock at present announced that it could purchase the German safety agency for round $360 million in an all-cash deal.
The M&A deal is the most recent of a sequence of consolidations and shifts in possession round each firms: NortonLifeLock got here into existence as a standalone firm solely final 12 months after Symantec’s enterprise safety enterprise was acquired by Broadcom for nearly $11 billion. NortonLifeLock is itself at present a publicly traded firm with a market cap of about $11.5 billion.
Avira, in the meantime, was till April of this 12 months a bootstrapped tech enterprise focusing primarily on safety software program for shoppers. Its merchandise embrace — like Norton itself — anti-virus software program. In Avira’s case (as with Norton’s) that software program has been resold by the likes of Fb (as a part of its now-dormant antivirus marketplace). In more moderen years, Avira’s clocked up extra prospects by way of the white-label offers it makes with huge names. Strategic companions at present include NTT, Deutsche Telekom, IBM, Canonical and extra. Avira has a buyer base of tens of millions, protecting about 30 million secured units and 1.5 million paying prospects (and plenty of extra taking free providers); combining that with its white-label companions, it says its software program touches about 500 million units globally at present.
Notably, Avira has constructed its enterprise round a freemium mannequin that Norton mentioned it plans to maintain.
Investcorp Expertise Companions, the PE division of Investcorp Financial institution, acquired a majority stake within the firm giving it an enterprise valuation of $180 million in April partly to inject some cash into the enterprise to offer it extra firepower to make acquisitions of its personal. On the time, it was a notable acquisition not just for placing Avira on the map as a consolidator, however as a sign that the M&A market was choosing up after it went dormant within the early days of the coronavirus gripping the worldwide financial system.
Finally, it appears like Avira grew to become one of many consolidated, as an alternative of a consolidator. NortonLifeLock is probably going to make use of the asset to assist it develop particularly in Europe, the place Avira has a powerful buyer base.
“I’m delighted to welcome Avira to the Norton household,” mentioned Vincent Pilette, CEO, NortonLifeLock, in a press release. “We try to carry Cyber Security to everybody, and buying Avira provides a rising enterprise to our portfolio, accelerates our worldwide development and expands our go-to-market mannequin with a number one freemium resolution. Culturally, we’re an awesome match. We share a relentless give attention to delivering progressive merchandise to prospects and we all the time assume customer-first. We can’t wait to get began with Avira.”
Travis Witteveen, who has been the CEO of Avira via its many phases of possession, mentioned in a press release that he’s “thrilled” with the deal, which has successfully doubled the valuation of his firm (within the earlier sale to Investcorp, Avira founder Tjark Auerbach retained a “vital” stake of the corporate, so that offers him a tidy sum, too).
“NortonLifeLock and Avira are fiercely devoted to serving to defend shoppers’ digital lives,” mentioned Witteveen in a press release. “We’re thrilled to turn into a part of NortonLifeLock – an organization that’s synonymous with belief and management in Cyber Security. By leveraging the size of NortonLifeLock, we will attain and defend extra shoppers across the globe.”
After the deal closes — which is predicted to occur in This fall 2021 — Witteveen and Avira’s CTO Matthias Ollig will be a part of the NortonLifeLock management crew, NortonLifeLock mentioned.
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