US cybersecurity firm NortonLifeLock has agreed to buy EU-based cybersecurity firm Avast at valuation of between $8.1 billion and $8.6 billion.

Both companies provide popular consumer focused cybersecurity products, and they will have a combined userbase of over 500 million with over $900 million in estimated annual quarterly revenue.

The newly created entity will be jointly headquartered in Prague, Czech Republic and Temple, Arizona and will be listed on the US Nasdaq exchange.

Norton said that Avast will continue to have a “significant presence” in the Czech Republic where it was founded in 1988.

Avast shareholders are set to receive a combination of cash and Norton shares in the deal, which represents a 20.7 per cent premium over its share price at the time.

Avast chief executive Ondrej Vlcek is set to join Norton as president and as a board member, while Avast co-founder and director Pavel Baudis is set to join the Norton board as an independent director.

2021 has been an active year for cybersecurity mergers and acquisitions; private equity firm Thoma Bravo acquired cybersecurity firm Proofpoint in an all-cash deal that valued the company at around $12.3 billion in April.

“At a time when global cyber threats are growing, yet cyber safety penetration remains very low, together with NortonLifeLock, we will be able to accelerate our shared vision of providing holistic cyber protection for consumers around the globe,” said Avast chief executive Ondrej Vlcek. “Our talented teams will have better opportunities to innovate and develop enhanced solutions and services, with improved capabilities from access to superior data insights.”

He added: “Through our well-established brands, greater geographic diversification and access to a larger global user base, the combined businesses will be poised to access the significant growth opportunity that exists worldwide.”

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