- Cyber security group Avast has confirmed it is in talks with NortonLifeLock
- Shares in Avast are up 12 per cent in early trading
Cybersecurity business Avast (AVST) has confirmed that it is in advanced talks regarding a possible merger with industry giant NortonLifeLock (US:NLOK).
Norton said in a statement that a combination would “bring together two companies with aligned visions, highly complementary business profiles and a joint commitment to innovation”. The company has until 11th August to make an offer, which it says may be a combination of cash and shares.
Norton has not disclosed how high its bid would be, but The Wall Street Journal, which first broke the story, has speculated that the deal could value Avast at more than $8bn (£5.8bn). That would represent an 11 per cent premium to yesterday’s closing price. But analysts at Berenberg believe that “nothing short of $10bn valuation is fair to Avast’s shareholders”. Shares in Avast bounced 12 per cent in early trading.
