Investcorp announced that it has entered into a definitive agreement to sell Avira (or the “Company”) to NortonLifeLock (NASDAQ: NLOK), a global leader in consumer Cyber Safety, for approximately US $360 million. The transaction is expected to close in Q1 2021, subject to regulatory approvals and customary closing conditions.
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Avira is a Germany-headquartered, global cybersecurity software solutions firm serving the Consumer and OEM (Original Equipment Manufacturer) end markets. Founded in 1986 by Tjark Auerbach, Avira provides customers with a comprehensive suite of software security solutions, including anti-malware, threat intelligence and IoT solutions to protect users’ online identity, finances, and private data.
Investcorp became Avira’s first institutional investor when it acquired the Company and has collaborated with Avira to drive organic growth and materially increase EBITDA, while further enhancing the Company’s suite of cybersecurity offerings and footprint through a strategic add-on acquisition. The sale of Avira is the first exit from the US $400 million Investcorp Technology Partners Fund IV.
Gilbert Kamieniecky, Managing Director and Head of Investcorp’s Technology Private Equity business, said: “Our investment in Avira is another great case study for how we are able to leverage our expertise in European Tech to help founders to strengthen and accelerate the growth of their businesses. We believe this transaction reflects our ability to quickly execute an ambitious organic and inorganic growth strategy alongside a Company’s management team. The opportunity to combine Avira with NortonLifeLock was too compelling to ignore, for the organization and we wish the company the best as it builds a strong European footprint for the combined entity.”
Yusef Al Yusef, Managing Partner for Investcorp’s Private Wealth said: “This transaction is another testament of our ability to invest and execute on our growth strategy. Avira was another high-quality addition to our Technology Partners portfolio, representing an attractive opportunity to invest in a cybersecurity business, and we are proud of the progress they have built overtime.”
Investcorp has established a market leading position of investing in lower mid-market technology companies with a successful track record in the Data / Analytics, IT Security and Fintech / Payment sectors. Investcorp’s other investments from its latest technology fund include Ubisense’s SmartSpace, the enterprise software and sensor Real-Time Location Solutions platform; softgarden, a Human Resources software provider; Calligo, a proprietary cloud solution; Ageras, an online marketplace matching SMEs with professional service providers; Impero, a provider of online student safety and classroom and network management software; and Contentserv, a product information management solutions provider.