7.05%

CYBER firm Avast climbed to the top of the FTSE 100 yesterday after NortonLifeLock's takeover of the company edged closer to completion, with Avast shares up seven per cent to 598p at close.

Some investors were concerned that Avast and US-based cyber security NortonLifeLock couldn't merge as they had such a large share of the consumer antivirus market.

Whilst this was traditionally the case, there has been increasingly less concern given that tech giants such as Microsoft, Apple and Google now provide native antivirus in their operating systems.

As a result, the competitive landscape is now much broader than what it used to be, and the merger was subsequently cleared by the US Department of Justice yesterday.

Analysts at broker Peel Hunt attributed this official clearance as a key factor for why share prices jumped so rapidly yesterday. Prague-based Avast agreed to be bought by NortonLifeLock in August, in a deal that will see its shareholders receive cash and shares that will value the group at between $8.1bn and $8.6bn (£6.4bn).

Avast currently specialise in small office protection and endpoint protection for small businesses, and has over 1,700 people in 18 locations globally.

The firms said the combined business would serve more than 500 million cybersecurity customers, including around 40 million direct customers.

"This transaction is a huge step forward for consumer Cyber Safety and will ultimately enable us to achieve our vision to protect and empower people to live their digital lives safely," said Vincent

Pilette, chief executive of NortonLife- Lock.

Following the official deal, Avast chief executive Ondrej Vlcek is set to join Norton as president and become a board member.

Pavel Baudis, a co-founder and current director of Avast, will also join Norton's board as an independent director.

The merged company will be dualheadquartered in Prague and Tempe, Arizona, with a "significant presence" in the Czech Republic. It will also be listed on the Nasdaq.

The acquisition still needs the approval of Avast shareholders, who are due to decide on the deal on Thursday. However, passing the regulatory hurdle is positive news for investors.

(c) 2021 City A.M., source Newspaper