Jamieson advises the Avast Software management team on the sale to CVC Capital Partners.
Avast Software, headquartered in Prague, is one of the world’s major players in the antivirus and consumer security software market. The major investment by CVC, which values Avast at $1 billion, is designed to position the company to expand its global reach into mobile security and the USA and Asian market. Summit Partners which originally invested $100m in Avast in 2010 remains a shareholder alongside the firm’s founders. Avast’s management team, led by Vincent Steckler, will remain with the business and will make a significant personal re-investment as part of the deal.
Jamieson supported the senior management team on a complex transaction that involved introducing new US borrower financing alongside replacement equity investment that allowed a partial exit to several shareholders. In addition to negotiating the terms of the management team’s re-investment in Avast, a new equity incentive scheme had to be put in place to ensure alignment with CVC’s projected returns. The transaction reinforces Jamieson strength in advising on cross-border, multi-jurisdiction management deals.
“These types of transaction involve facilitating the different interests of the management team, founder shareholders and existing private equity investor whilst balancing them with the objectives of an incoming sponsor. The returns need to work for all parties and the management package must be flexible to cater for the next phase of the business plan”.
Stuart Coventry, Jamieson
The transaction represents Jamieson’s fourth $1bn + deal in the past 12 months.