Avast to shut down data processing unit Jumpshot

Prague, Jan 30 (CTK) - Cybersecurity company Avast, which was founded by Czech engineers, will wind down its Jumpshot data processing division, the company said in a press release today.

Hundreds of jobs are at stake.

Avast allegedly collected data on what many of its users did online and provided it to Jumpshot, which then offered the information to clients, media reported earlier this week.

"We regret the impact this will have on Jumpshot employees and we appreciate the contributions they have made. We will endeavor to make this transition as smooth as possible for them," said Avast CEO Ondrej Vlcek.

Avast has a majority stake in Jumpshot, but it has sold 35 percent to company Ascential.

Ascential said today it would sell its share back to Avast, getting an amount equivalent to its investment and other related expenses.

Avast has not denied selling the data, however, it said the information was anonymised.

In 2015, Jumpshot started providing marketers with trend analyses and statistics on anonymised buying habits.

Early this week, the PCMag magazine reported that the data Avast had been selling to clients could be linked to its users.

Since Monday, Avast's shares traded on the Prague Stock Exchange (BCPP) have shed nearly 20 percent to Kc130. A year ago, they traded for about Kc80 apiece.

Avast, established by Czech engineers Eduard Kucera and Pavel Baudis in 1988, is a trailblazer in cybersecurity. It is the second largest company in the field in terms of sales, following US Symantec.

In 2016, Avast bought its Czech rival AVG.

The company employs 1,200 people in Czechia. It has over 400 million users worldwide, according to its website.

In 2018, Avast raised its sales by 8.3 percent to USD811.5m (Kc18.6bn), and its net income grew by 6.2 percent to USD270.8m (Kc6.2bn).

Jumpshot, based in San Francisco, the USA, employs more than 200 people worldwide, most of them in Czechia.

"We will offer attractive severance packages and support to all the employees to help them find new jobs quickly. We will try to transfer them to open positions in Avast," spokeswoman Dominika Kalasova told CTK.

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