Cybersecurity company Lookout has announced the sale of its consumer mobile security business as it finalizes the transition to an enterprise-only organization.
F-Secure’s acquisition, reportedly worth $223 million, will see the Finnish company almost triple its US market presence by tapping into the existing network that Lookout has already built.
For Lookout, which has been building B2B relationships since its early days when it focused on consumer smartphone security tools, its core business is now set to be one catering to enterprise needs.
Lookout goes enterprise amid F-Secure deal
With eyes toward the future, the Lookout announcement reads: “With this partial divestiture, Lookout’s core enterprise business will continue to expand and diversify to address the most pressing security challenges facing IT and security leaders today.”
The sale’s proceeds are set to be reinvested into Lookout’s enterprise products, along with debt-financing worth $150 million acquired from BlackRock last year.
Both companies hope that the deal, which is set to close in the second quarter of 2023, will represent over $13 million of annual revenue synergies in 2027, as well as an increase in EBITA and cash flows.
Further to this acquisition, F-Secure has become a household name for its cybersecurity products, including Internet safety, VPN, and ID theft protection.
F-Secure CEO Timo Laaksonen said: “The acquisition of Lookout consumer BU is a significant step in developing our business in the United States.”
Laaksonen continued to explain that the company will “warmly welcome this talented group,” indicating no loss of jobs in the process.
Lookout CEO Jim Dolce is equally as optimistic: “The impact on customers is a genuine example of when one plus one equals three.”
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