Antivirus: is the takeover of Avast by Norton in jeopardy?

The finalization of takeover of Avast by Norton
may again be delayed. The operation costed between 8.1 and 8.6 billion dollars has lead in the wing.

The UK competition authority has raised concerns about the creation of the future cybersecurity giant.

The finalization of the takeover of Avast delayed?

The birth of the giant NortonLifeLock-Avast is threatened. After getting the green lights in the US, Germany and Spain, the two security players face a major hurdle in the UK. The UK competition regulator (Competition and Markets Authority) is concerned about the effects of such a merger on competition in the country, and fears that it will create ” a worse situation for consumers looking for cybersecurity software explains David Stewart, President of the CMA.

Together, Norton and Avast equip more than 500 million users worldwide with security software, both in terms of antivirus, VPN and protection against identity theft. The British authority is therefore asking this new security giant, which casually aims to achieve 3.5 billion dollars in turnover and cost synergies of 280 million dollars per year, to present concessions to address his concerns. The group has five days or it will trigger further investigation that could result in a veto.

A shortfall for Norton

For its part, NortonLifeLock has indicated that it does not intend to comply with the requirements of the regulator, but it will continue to collaborate with the CMA during the process. ” This decision is surprising. We believe this takeover can only be beneficial for consumers around the world, including those based in the UK. It will lead to growing innovation and greater freedom of choice for them, going beyond the big tech platforms in the cybersecurity market. “, replied the group in a press release.

With two postponements already and awaiting full validation, the company indicates that it does not hope to conclude the operation before the second half of the year. A failure of the merger would force Norton to review its entire strategy and especially to give up Avast’s 435 million customers and 940 million in turnover as well as its pool of 1,700 skills, half of which in R&D.

Source: Norton