Cybersecurity provider Lookout Inc. is selling its consumer business, which develops a popular mobile antivirus with more than 200 million users worldwide.
The buyer is F-Secure Corp., a competing antivirus maker. Lookout didn’t disclose the financial terms in its announcement of the transaction today. According to TechCrunch, the deal is believed to be worth about $223 million.
Lookout plans to focus on the enterprise cybersecurity market following the sale. The transaction is expected to close by July.
The company’s flagship consumer product is Lookout Life, an antivirus platform that supports iOS, Android and ChromeOS. It’s capable of detecting malicious apps as well as other threats such as insecure Wi-Fi networks. Alongside its core antivirus features, the platform includes a tool that alerts consumers if their data is stolen as part of a hacking campaign.
The acquisition of Lookout Life will help F-Secure expand its presence in the cybersecurity market. The Helsinki-based company sells a popular antivirus platform for Windows computers, Macs and handsets. F-Secure says it has 16 million customers worldwide.
The addition of Lookout Life’s 200 million users will help the company significantly grow its installed base. Additionally, the deal could expand its presence in the ChromeOS ecosystem. Lookout Life can run on the Google LLC-developed operating system, which isn’t yet supported by F-Secure’s flagship antivirus.
F-Secure reported financial results for its fiscal first quarter in conjunction with today’s acquisition announcement. The company’s sales grew 1.6% year-over-year, to 27.8 million euros, in the three months ended March 31. F-Secure expects that the acquisition will “significantly accelerate” revenue growth as well as improve its earnings before interest, taxes and amortization.
Lookout, for its part, plans to use the proceeds from the deal to grow its presence in the enterprise cybersecurity market.
“Our success in the highly competitive enterprise market has compelled us to focus our product and go-to-market efforts to gain advantage,” said Lookout Chief Executive Officer Jim Dolce. “By doubling down on the enterprise market, we’ll be better positioned to capitalize on its projected hypergrowth.”
Lookout offers an enterprise version of its mobile antivirus platform that offers an expanded feature set. It can block malicious apps, phishing campaigns and other threats. The platform also allows companies to detect when an employee logs into a work application from a potentially insecure device and block the connection.
Lookout offers the platform alongside a second enterprise product called Secure Cloud Access. According to the company, the latter offering makes it easier to protect data stored in business applications. It allows companies to regulate which user can access what data and how, as well as detect malicious activity.
The software is based on technology that Lookout obtained in 2021 through its acquisition of CipherCloud Inc., a venture-based cybersecurity startup. The proceeds from the sale of its consumer business could potentially enable the company to make additional acquisitions.
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