Investcorp acquires Avira for $180m

Greg Gille
09 April 2020

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Investcorp Technology Partners has agreed to acquire German cybersecurity business Avira for $180m.

This is the first time Avira has received institutional funding since inception in 1986. The company mandated Drake Star Partners to oversee an auction process earlier this year, Unquote sister publication Mergermarket previously reported.

The sale headed into the first round in early February, with Avira looking for a financial investor rather than a strategic bidder, to help foster growth, according to the same report.

The deal is the seventh from Investcorp Technology Partners IV, which held a final close on $400m in December 2018. The fund targets fast-growing, founder-owned technology businesses headquartered in Europe that specialise in the data, analytics, IT security, fintech, payments, internet and mobility sectors. It deploys equity tickets of $25-50m.

The GP will not use leverage for this transaction, Unquote understands.

Investcorp has been active in the DACH technology space recently, with Avira representing its third deal in that space in 18 months. The GP also acquired Berlin-based Softgarden, a human resources software provider, from a consortium of vendors including Cipio Partners in Q4 2018. This was followed by the acquisition of a majority stake in Swiss product information management software company Contentserv in mid-2019.

Avira stated that it would look to accelerate its profitable growth in the consumer and original equipment manufacturer (OEM) market segments following the deal.

Company
Established in 1986, Avira is a cybersecurity software firm serving the OEM and consumer end markets. Its software provides security for users' online identity, finances and private data, protecting against viruses, malware, ransomware and other threats.

Avira generates €70m in annual sales. The asset was expected to be marketed based on EBITDA in the €10-20m range.

People
Investcorp – Gilbert Kamieniecky (managing director, head of technology PE).