By Michele Maatouk
Date: Tuesday 09 Mar 2021
LONDON (ShareCast) - (Sharecast News) - Digital security company Avast said on Tuesday that it has agreed to sell its Family Safety Mobile business to Smith Micro Software for $66m.
The deal, which is expected to close mid-April, includes Avast's portfolio of mobile parental controls services including location features, content filtering and screen time management.
William W. Smith, Jr., president and chief executive of US-based Smith Micro, said: "Acquiring the Family Safety Mobile business from Avast will present a significant opportunity for Smith Micro to transform the global market for carrier-grade digital family mobile software.
"The acquisition will create one of the leading family safety software solutions providers for wireless carriers and will blend two highly experienced and talented development teams."
Under the terms of the transaction, Smith Micro will pay a potential additional earn-out upon certain performance criteria being satisfied.
Nick Viney, senior vice president of Avast Partner, said: "This agreement gives Avast's Partner team the opportunity to focus on building out our priority cybersecurity and privacy offerings and to expand into new vertical markets as well as the telecommunications space by partnering with Smith Micro to deliver our products and services to their customers as well as ours."
At 1500 GMT, the shares were up 5.7% at 443.92p.
Jefferies, which rates the shares shares at 'buy', said: "Avast's divestiture of the family safety business is likely a positive for Avast, as it is divesting a historically challenged business."
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