Update F-Secure to separate Consumer Security business through a partial demerger

Anthony Qian

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Apr 17, 2021
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It is planned that the Consumer Security business will be transferred into a new independent company to be named F-Secure Corporation (“F-Secure”). The planned completion date of the demerger is June 30, 2022. The trading in the new Consumer Security company’s shares on Nasdaq Helsinki (“Nasdaq Helsinki”) is expected to commence on July 1, 2022, or as soon as possible thereafter. In connection with the Demerger, the Company will carry on its Corporate Security business and it is planned to be renamed as WithSecure Corporation (“WithSecure”).

(Demerger | F-Secure)
 

CyberDevil

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Apr 4, 2021
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After handing out a huge number of free licenses, this news looks even more shady. Does this mean that it will be easier for some Norton or any American fund to buy out the shares of the new split company? I worry that F-Secure might have a change of actual management or jurisdiction.
 
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ForgottenSeer 92963

Few years ago, we had a big 5 (Microsoft, Avast/AVG, Bitdefender, Kaspersky, Norton) with a few challengers (Eset, Avira, F-Secure, McFee, Fortinet). Homeland policies effectively killed 1/3 of Kaspersky's, After Symantec sold Norton, Norton started to buy Avira and Avast/AVG, Fortinet traditional focussing on corporate market, it seems like the AV-industry is heading for the traditional shake out of maturing markets.

When M$ Defender's exploit matures further incorperating hardware based security mechanisms, Deep Guard (and ESET's HIPS also) added value will lower in time. So I guess @CyberDevil is right. The "only" added benefit of F-Secure in the consumer market is deep guard. It seems that they want to capitalize on user base and this remaining advantage.

In Dutch we say "choose eggs for their money" (meaning cash out as long it still has some value).
 

Sorrento

Level 4
Dec 7, 2021
190
I'm not sure F-Secure paid for the 'free' licenses, probably more like Virgin Media (Liberty Global) in a block deal though as VM has 4.5 million users I would think it's a drop in the ocean to them as most of the users would be eligible for a 10 users F-Secure. So few users knew of the keys this last week.
 
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ForgottenSeer 92963

Norton revenue (2021 data) 2.7 billion dollar Avast (2021) 900 million dollar, Avira (2021)did 100 million dollar in 2021 , so combined (Norton/Avast-AVG/Avira = 3.2 billion euro). Compare this with Bitdefender (290 million Euro) or Kasperky (business and consumer market) 704 million dollar. Sophos revenue decreased from 710 million dollar in 2019 to 543 million in 2020 (over 20% decrease), consumer market of Sophos is also less than 100 million dollar. F-secure consumer division of F-Secure grew from100 to 106 million Euro in 2021. F-Secure sells white label home user products to big Telco's and Cable companies. When you compare that strategie against freemium sales model or sales through agents/dealers, F-secure is doing a good job.

So F-secure consumer is an interesting company to take over by a competitor, because
1. They have some added value in their product (deep-guard)
2. They have access to/deals with a lucrative sales and distribution channel (selling F-secure as white label and brand it as a AV from a Telco/Mobile/Cable/Media company)
3. They have recently switched from Bit Defender to Avira, so they are experienced in changing the AV-engine (and probably have used clean and easy to swap interfacing mechanisms)
 
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Banzai

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Jul 7, 2013
24
More from the Japanese website. If you use your browser's "Translate to English", the article has good information.

 

Virtuoso

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Feb 21, 2022
32
After reading this article, I think F-Secure may exit the consumer market in the future. It seems that they are focusing on "WITH-secure". In fact, it is used more often by companies and schools than by individuals in Japan.

I say it is the opposite, F-secure consumer business unit will get more focussed and stronger. After the demerger, The F-secure consumer business will be able to better concentrate on acquiring consumers for their Home product like SAFE, TOTAL. It will take another 3 months for demerger to complete, so we can expect big moves in the next 6-12 months from the F-Secure consumer business unit.

Currently they only sell in few markets. The new demerged consumer business can spend more time and resources to ensure widespread availability just like Kaspersky, Bitdefender and ESET which offer local pricing via local websites and resellers. For example, they don't have an Indian website nor do they sell on Amazon.in nor do they have any Indian resellers. I say all this will change within a year of demerger.
 

show-Zi

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Jan 28, 2018
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I say it is the opposite, F-secure consumer business unit will get more focussed and stronger. After the demerger, The F-secure consumer business will be able to better concentrate on acquiring consumers for their Home product like SAFE, TOTAL. It will take another 3 months for demerger to complete, so we can expect big moves in the next 6-12 months from the F-Secure consumer business unit.

Currently they only sell in few markets. The new demerged consumer business can spend more time and resources to ensure widespread availability just like Kaspersky, Bitdefender and ESET which offer local pricing via local websites and resellers. For example, they don't have an Indian website nor do they sell on Amazon.in nor do they have any Indian resellers. I say all this will change within a year of demerger.
I hope so too. In Japan, there are no distributors for home users other than official ones.:)(y)