CVC-backed Avast to float on London Stock Exchange

Nicole Tovstiga
13 April 2018

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Czech cybersecurity software developer Avast, backed by CVC Capital Partners, has announced its intention to float in what could be one of the biggest tech offerings on the London Stock Exchange.

The listing is anticipated to go ahead in early May, aiming for a free float of approximately 25% of Avast's issued share capital.

Avast aims to raise around $200m in primary proceeds. It could be valued at $4bn if successful, according to media reports.

The shareholders of the company comprise the founders (46%), CVC (29%), management, the board and employees (18%) and Summit Partners (7%).

According to the company, it has 435 million users worldwide as of 31 December 2017, including 290 million personal computer software users, and 145 million mobile users.

Morgan Stanley and UBS Investment Bank are joint global coordinators, joint bookrunners and joint sponsors on the upcoming listing. Other joint bookrunners include Bank of America Merrill Lynch, Barclays Bank, Credit Suisse and Jefferies International.
A customary lock-up period will apply following admission to the stock exchange.

Summit Partners invested $100m in growth capital for a minority stake in the Czech software vendor in August 2010.

CVC Capital Partners backed Avast in a deal that valued the business at $1bn in February 2014. The investment underpinned the company's reach in the mobile security space and its expansion in the US and Asia. Credit Suisse, UBS and Jefferies provided financing to support the company, including further resources for investments and acquisitions. Summit Partners remained a shareholder alongside the firm's founders, Pavel Baudiš and Eduard Kucera.

Founded in 1988 and based in Prague, Avast develops antivirus software for computers and mobile devices. The firm produces free antivirus solutions for PC, Mac and Android, as well as premium services for consumers and businesses.

Other products includes a secure virtual environment for online transactions, a password storage facility, a cloud back-up facility and a service to secure public wifi and ensure anonymous browsing.

The company employs a staff of 600 in its R&D division and a further 1,700 across the business. It posted adjusted revenues of $780m in 2017.