Mergers and acquisitions largely came to a standstill in late March after the global spread of the coronavirus pandemic. Today, however, there is news of a deal outside Europe that highlights where there is still activity. Avira, a Germany-based cybersecurity company that offers consumers, as well as white label offerings of a number of major technology brands, anti-virus, identity management and other tools, was picked up by Investcorp Technology Partners, Investcorp's PE division. Investcorp's plan is to help Avira make acquisitions as part of a more comprehensive security consolidation.
The financial terms of the acquisition will not be announced in the joint announcement of the companies, but Avira's CEO, Travis Witteveen, and Gilbert Kamieniecky, managing director of ITP, both stated that Avira will receive an overall valuation of $ 1
Avira is not a tech startup or not in the typical sense. It was founded in 1986 and has been brought to its knees in that it has apparently not made any external investments as it has grown. Witteveen said there are "tens of millions" of private label product users today – his antivirus software was resold by Facebook (as part of its now dormant antivirus market) – and many more through the big-name white label business. Strategic partners include NTT, Deutsche Telekom, IBM, Canonical and others.
He said the company had many strategic approaches to acquiring technology companies and more typical investors, but these were not routes that it wanted to follow as it wanted to grow as its own business and needed more funding to do so to do than what it could get from more standard VC deals.
"We wanted a partnership that someone could join in and support our organic growth and inorganic [acquisition] opportunity," he said.
Additional acquisitions are planned to increase Avira's presence, both in terms of products and particularly in terms of geographic presence. The company is active in Asia, Europe and to a lesser extent in the United States Investcorp has a business that extends deep into the Middle East.
Cyber security may never go out of style as an opponent of investment and growth. Rtunity in tech. Not only have cyber threats become more complex and pervasive in recent years, targeting individual consumers and businesses, but our increasing dependence on technology and systems connected to the Internet will also have to increase demand and protect it from malicious attacks.  This has become no more obvious than in the past few weeks, when a large part of the world's population was housed in emergency shelters. In turn, people have spent unprecedented time online using their phones, computers, and other devices to read the news, communicate with their families and friends, chat, and do critical work that they may have done offline in the past.  "In the current market, one can imagine that many are concerned about the uncertainties in the technology landscape, but this is one that continues to thrive," said Kamieniecky. " In terms of security, we've seen companies evolve fairly quickly and quickly, and here we have the opportunity to do so."
Avira has been a kind of consolidator, buying companies like SocialShield (ITP, which Investcorp manages with $ 34 billion in assets under management, has made numerous acquisitions (and divestitures) over the years, including Ubisense, Zeta Interactive and Dialogic