NortonLifeLock Acquires Avira in $360 Million Deal, Strengthening Cybersecurity and OEM Market Position

Investcorp has concluded a landmark transaction, transferring the German cybersecurity firm Avira to NortonLifeLock (NASDAQ: NLOK) for approximately $360 million. This represents the inaugural exit from Investcorp Technology Partners Fund IV, signaling strong portfolio performance in the technology sector.

The Transaction Details

The definitive agreement marks a strategic consolidation in the consumer cybersecurity space. Closing is anticipated during the first quarter of 2021, contingent upon regulatory clearance and standard completion prerequisites. Avira, established in 1986 by Tjark Auerbach, has evolved into a global powerhouse in cyber defense, serving both the consumer segment and OEM (Original Equipment Manufacturer) partners with comprehensive protection solutions.

Strategic Rationale Behind the Deal

The acquisition aligns two complementary players in digital safety. Avira brings decades of expertise in anti-malware, threat intelligence, and Internet of Things (IoT) security solutions, protecting users’ digital identities and sensitive information across 30 million devices worldwide. NortonLifeLock’s vision of delivering universal Cyber Safety resonates with Avira’s foundational belief that secure online experiences should be accessible to everyone.

During its ownership period, Investcorp fostered Avira’s expansion through organic growth initiatives and strategic acquisitions, while substantially elevating EBITDA and broadening the cybersecurity product suite. This investor-led transformation enhanced the company’s market readiness for integration with a larger platform.

Industry Perspectives

Gilbert Kamieniecky, Managing Director and Head of Investcorp’s Technology Private Equity business, emphasized the firm’s capability in nurturing European technology enterprises: “Our investment in Avira exemplifies our expertise in scaling European tech companies. This transaction demonstrates our proficiency in executing ambitious growth strategies, both organic and through acquisitions, in close partnership with management teams. Combining Avira’s strengths with NortonLifeLock’s resources creates substantial value for consumers globally.”

Travis Witteveen, Avira’s Chief Executive Officer, noted: “Investcorp’s backing was instrumental in accelerating our growth trajectory. NortonLifeLock’s commitment to safeguarding consumers aligns perfectly with our mission. As cyber threats multiply globally, this partnership enables us to extend our protective reach to significantly more users worldwide.”

Market Context

Investcorp maintains a competitive advantage in lower mid-market technology investing, with particular strength in Data Analytics, IT Security, and Fintech sectors. Beyond Avira, the technology fund portfolio encompasses Ubisense’s SmartSpace (enterprise location intelligence), softgarden (HR software), Calligo (cloud infrastructure), Ageras (SME service marketplace), Impero (educational technology), and Contentserv (product data management).

Established in 1982, Investcorp operates across 12 nations with $32.2 billion in total assets under management as of mid-2020, employing approximately 450 professionals spanning 44 countries. The firm maintains a disciplined approach to Environmental, Social and Governance considerations while aligning its own capital interests with stakeholder expectations.