Norton LifeLock


NLOK sold it’s enterprise software division to Broadcom ($AVGO) and became a pure-play consumer software company selling cyber security and antivirus products. In September 2022, they are closing on a major acquisition of UK-traded Avast.


Acquisition presentation (August 2021) — Merger with Avast


September 2022 — VDL quick thoughts

I’m attracted to the extreme cash flowing nature of this business ($900m operating cash flow and $6m in capex on $2.8bn in sales). The balance sheet is just fine with 2x FCF in leverage. Analysts think the consumer cyber security offerings is a competitive and tough business but it seems to be a trend that will gain attention over time. Skeptical on the Avast acquisition as they are probably overpaying and levering up to 3.5x EBITDA.

They believe they’ll get to $3 in EPS within 3-5 years which puts the stock around 7.5x earnings at $22/share. They’ll still be generating lots of cash flow and promise to return close to 100% of that annually.

May 2021 — VDL quick value post