US cyber security giant NortonLifeLock is to buy rival company Avast for over $8 billion to create a leading consumer business, the pair announced Wednesday.
The agreement, which comes just weeks after both companies confirmed they were in discussions regarding a possible combination of the two brands, will see Avast stockholders receive cash and shares that value the deal at $8.1 billion to $8.6 billion.
The chief executive of Avast said that amid increasing global cyber threats, the merge would allow for "enhanced solutions and services, with improved capabilities".
The deal was finalized just weeks after NortonLifeLock bought free antivirus provider Avira for £360 million. More than 500 million users will benefit from the new group's safety offerings.
The final name of the merged company has yet to be determined, but NortonLifeLock has confirmed it will be dual headquartered in the Czech Republic and Tempe, Arizona, and will seek to cut its number of employees from 5,000 workers to around 4,000 over the next two years. The combined company will be listed on the Nasdaq, rather than Avast’s current London Stock Exchange home.