Cyber security firm Avast is reportedly in talks with rival company NortonLifeLock about a possible merger that would guarantee a new leader in consumer security software.
Both firms confirmed the talks late last Wednesday, with Avast stating that an offer would be in cash and shares, although there was no certainty a deal will be reached.
Avast is a pioneer of "freemium" software, whereby basic applications are free and subscribers pay for premium features.
Avast's heavily branded desktop and mobile software had more than 435 million active users at the end of 2020, of which 16.5 million are currently paying for their premium services.
The company's founders, Pavel Baudis and Eduard Kucera, own a combined 35% of the total company.
The Wall Street Journal, which first reported the talks, said a deal could value Avast at $8 billion or more.
Analysts at Berenberg, however, said "nothing short of a $10 billion valuation is fair to Avast's shareholders".
Arizona-based NortonLifeLock sstated a deal would bring together "two companies with aligned visions".
NortonLifeLock was previously known as Symantec Corp, before it sold its enterprise-security business to Broadcom in 2019. It currently sells Norton antivirus software and LifeLock identity-theft-protection products for home and work use.
Under UK takeover rules, it has until August 11th to make a firm offer for Avast.