Benzinga | Mar 9, 2021 11:22AM EST

Smith Micro Software To Acquire Avast's Family Safety Mobile Business For $66M

Software development company Smith Micro Software Inc (NASDAQ: SMSI) inked an agreement to acquire digital security and privacy product company Avast PLC's (OTC: AVASF) Family Safety Mobile Business for $66 million, subject to additional earn-out based on the accomplishment of certain milestones.

* The acquisition includes Avast's portfolio of mobile parental controls services, including location features, content filtering, and screen time management-focused towards the consolidation of Smith Micro's position in delivering family mobile software solutions to the carrier industry.

* Smith Micro plans to expand its white-label digital safety solutions, firming up its position as a leading global family safety software-as-a-service (SaaS) provider enabling Smith Micro to add critical headcount in the U.S. and Europe. Avast will retain its carrier IoT security and in-home protection services, such as those provisioned through the Avast Smart Life platform and the Avast Omni product, and continue to serve its existing non-family customer base with these solutions.

* The companies intend to enter a preferred partner arrangement to respond to future carrier tenders requiring both family mobile safety and IoT or digital security services.

* Forecasts indicate 24.1 billion active IoT devices by 2030, exuding potential for core digital security solutions as people's lives become increasingly connected, as per Avast SVP Nick Viney.

* Smith Micro recently launched a follow-on public offering to raise $62 million to fund the Avast acquisition.

* Smith Micro's cash and cash equivalents were $25.8 million on December 31, 2020.

* Price action: SMSI shares are trading higher by 12% at $6.93 on the last check Tuesday.