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Private Equity Firm Acquires Avira Cybersecurity Software


Private equity firm Investcorp Technology Partners is acquiring cybersecurity software provider Avira. Financial terms were not disclosed.

This is M&A deal number 176 that ChannelE2E has covered so far in 2020. The pace of deals has slowed a bit since the coronavirus pandemic emerged, but overall M&A activity remains reasonable steady. See the complete M&A deal list here.

Avira has traditional channel partners and OEMs, but the company's website doesn't emphasize more modern MSP and MSSP relationships.

Investcorp Acquires Avira: Business Focus

Avira, which has roughly 500 employees, is headquartered in Tettnang, Germany with additional offices in the EU, the United States, and Asia. The investment will allow Avira to expand its offerings to more regions and customers around the globe, the company said.

Avira's business extends back to 1986. Today, the software protects 500 million endpoints globally. The firm specializes in anti-malware, threat intelligence, and IoT solutions. A freemium software model has been key to Avira's growth.

New owner Investcorp Technology Partners is the PE division of Investcorp Bank.

Avira Acquisition: Executive Perspectives

Tjark Auerbach, Founder, Avira
Tjark Auerbach, founder, Avira

In a prepared statement about the deal, Tjark Auerbach, founder of Avira, commented:

"We have been protecting our users for more than 30 years. With Investcorp, I have an investment partner who shares my values and will underpin the strategy of the management team to continue protecting people for many years to come.”

Gilbert Kamieniecky, managing director and head of Investcorp’s Technology Private Equity Business, said:

“We are delighted to announce another high-quality addition to our Technology Partners portfolio. Avira represents an attractive opportunity to invest in a cybersecurity business. With our long history of working with cybersecurity, IoT and data-driven businesses, Investcorp is looking forward to supporting Avira’s targeted growth trajectory and expansion plans.”

M&A Continues at a Slower Pace

The coronavirus pandemic has pressured M&A activity but there are still pockets of activity.

German firms have been particularly active in recent weeks. Noteworthy deals include:

Private equity firms have also been busy in early 2020. Active buyers and investors include Abry Partners, Accel-KKR, Frontenac, Insight Partners, M/C Partners, One Equity, and Trinity Hunt Partners.

Meanwhile, M&A activity in the MSP market has continued -- though perhaps not at the torrid pace of January and Febvruary 2020.

Zygoquest owner Michael Dude, who has advised on many M&A deals, explained to ChannelE2E:

“(Owners) of IT Managed Services Providers have been telling us that Managed Services’ recurring revenue has been relatively stable while on-site project work has slowed because of social distancing and working-from-home scenarios. In fact, IT-MSP owners are experiencing top and bottom-line growth opportunities as clients and their employees are requiring work from home IT capabilities and services.”