European Expansion Strategy NortonLifeLock Announces a $360 Million Deal to Buy Avira

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NortonLifeLock has announced the company’s purchase of Avira from Investcorp at a total evaluated investment of $360 million. This step has been ideated by the firm to expand its privacy offerings in the European market as well as to diversify and conquer several other emerging markets. It is also in congruence with the company’s strategy of strengthening its customer cybersecurity protocols.

Asset Acquisition

Established in 1986, Avira had not accepted any institutional investments until the Investcorp acquisition. Avira’s value has effectively doubled during the course of 2020. The company is renowned for its customer-focused portfolio of security and privacy tools for Windows and Mac computers, home networks, Android and iOS smartphones and smart Internet of Things devices. The current NortonLifeLock announcement comes within a period of 8 months of Investcorp buying the hitherto privately held Avira at $180 million. The decision is a well deliberated one, as Avira currently has 1.5 million paying users and caters to almost 30 million devices.

In 20020, NortonLifeLock generated more than 72% of its sales from America, while accounting for only 16% from the European, Middle Eastern, and African markets. Gagan Singh, NortonLifeLock Chief Product Officer commented on the acquisition saying, “We were pioneers in delivering comprehensive Cyber Safety to our consumers via our Norton 360 platform, and now with the addition of Avira’s product capabilities and solutions, we can better serve a broader set of consumers with our combined portfolio and a freemium business model.”

Rising Stock Evaluations

This announced acquisition comes a year after the NortonLifeLock agreed to sell its ID Analytics Credit and Fraud Risk Assessment business to LexisNexis Risk Solutions for $375 million. After this current acquisition announcement, NortonLifeLock’s stock went up by 0.38% at the National Stock Exchange. This marginal rise is expected to expand further in the coming days. The deal is expected to add 3 points of growth to the company’s revenue. The final deal is slated to be completed in the fiscal quarter ending on April 2^nd, 2021. Avira CEO Travis Witteveen and Chief Technology Officer Matthias Ollig will be joining the NortonLifeLock leadership team as a part of this acquisition contract.