NortonLifeLock targets European leader Avast

Article Excerpt

Growth by acquisition adds risk—especially with a purchase as big as Avast. However, demand for cybersecurity is now booming; and Avast is very complementary to NortonLifeLock’s current offerings and customer base. NORTONLIFELOCK, $25.59, is a buy. The company (Nasdaq symbol NLOK; TSINetwork Rating: Extra Risk) (nortonlifelock.com; Shares o/s: 579.9 million; Market cap: $15.0 billion; Dividend yield 2.0%) is now in talks to buy European cybersecurity firm Avast plc. The purchase would expand NortonLifeLock’s focus on consumer software. The deal could value Avast at more than $8 billion. NortonLifeLock now has until August 11 to make a firm offer according to U.K. takeover regulations. Avast, which is based in Prague but trades on the London Stock Exchange, primarily makes both free and premium security software for consumers. That product is focused on desktop security, server and mobile-device protection. The company has 435 million active users and its 2020 revenue was roughly $893 million. To put that into perspective, NortonLifeLock reported revenue of $672 million in…