Growing with Avastx
If you ever needed proof of the importance of investing in a client relationship, software company Avast is a prime example.
When our Prague office first started working on their everyday legal matters, Avast was a young company called Alwil, based out of the Czech capital.
It began as a cyber security company providing anti-virus software, but has since expanded into digital privacy and performance software.
Last year, Avast was listed on the London Stock Exchange with a valuation of £2.4 billion and, since that initial public offering (IPO), its share price has continued to rise.
Partner Lucy Bullock, who has been working with the client since 2014, explains: “Our relationship with Avast has been exciting, because we’ve been supporting them since the early days.
“Having worked with them initially on day-to-day legal work, in 2010 we advised them during a third-party investment by private equity firm Summit (when Avast was valued at between £60-100m) and, among other things, a major investment deal with another of our clients, CVC Capital Partners, which is when our London office became involved.
“The resulting sponsorship from CVC has seen Avast’s development accelerate. Since then, we’ve been involved in more M&A work, including a major acquisition of U.S. software firm AVG, which was worked on by our London and New York teams.”
“I found the secondment really valuable and a real point of difference for the Firm, because rather than just helping on the deal and then disappearing, we got to see beyond the transaction.”
Our relationship with Avast now covers a broad range of offices and practice areas touching our entire network. As a Czech headquartered, UK-listed company with U.S. offices, our global coverage is a perfect fit.
Growth in the work we do for them has also been accelerated by our private company portfolio advisory model, which sees us actively seek to support portfolio companies following investment from a sponsor.
Lucy says: “Following the CVC acquisition in 2014 I actually went on secondment at Avast for a couple of months, helping them adapt, offering advice to the senior team, and assisting them in getting any key legal requirements in place.
“I found the secondment really valuable and a real point of difference for the Firm, because rather than just helping on the deal and then disappearing, we got to see beyond the transaction.
“That helped us get an insight into what it means to the client going forward, to build relationships with senior board members, and to understand how our documentation works in practice.
“Being there for a client during these types of landmark moments can really strengthen the bond and build a true partnership.”
Avast’s IPO in May 2018 was a significant landmark for the client and the Firm.
“Growing our relationship with Avast is important for the Firm strategically, both because it’s in the tech industry and as it’s so high profile.”
Lucy says: “Avast chose us for the exit because of the strength of our relationship and the fact we know them so well.
“That also meant we knew about their intentions well in advance, so we were working with them to prepare from around six to eight months before the IPO, including helping them on their decision of whether to list in Europe or the United States (tech firms are generally expected to list on the NASDAQ).”
Work on the IPO was again notable for an impressive cross-team effort including our equity capital markets team, debt team, employment team, our U.S. financing team, the Prague team and the London office.
Following the successful completion of the IPO, which was Europe’s biggest software IPO of 2018, we are looking at strengthening our relationship further, helping them with things like M&A work, increased regulation, day-to-day disclosures, AGMs and annual reports.
Lucy says: “Growing our relationship with Avast is important for the Firm strategically, both because it’s in the tech industry and as it’s so high profile.
“What’s particularly gratifying is that, by simply building a strong relationship, sticking with Avast and delivering globally as a joined-up team, we’ve produced good revenues (worth around $8 million in 2018) and are now working with a high-profile PLC that’s listed on the FTSE.
“It’s been an amazing team effort throughout, with a consistent focus on cross selling and up selling and relationship management where we believe we can benefit the client.”
“It’s been an amazing team effort throughout, with a consistent focus on cross selling and up selling and relationship management where we believe we can benefit the client.”
Another aspect of relationship building has been two-way secondments – a decision that benefitted the client and the Firm. For instance, we recently hosted a secondee from Avast’s legal team at our Silicon Valley office.
In addition, several White & Case alumni from the Czech Republic and London now work in the Avast legal team.
Lucy says: “The links between our companies are really strong and represent a genuine partnership.
“For instance, Avast’s chief of staff Alan Rassaby knows several members of our team so well we feel he is invested in us.
“For example, when I work with him, he is always helping me to improve and develop.
“A team from the Firm also held an internal meeting recently and arranged to host it at Avast’s headquarters in the Czech Republic, where the client gave an insight into what’s happening in the tech sector.
“That shared knowledge is invaluable because, while Avast understand we want to know how we can best support them, they also want that relationship to work both ways.”
