Subsequent Events

9 Months Ended

Dec. 27, 2024

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Significant E-commerce Partner

At the end of our third fiscal quarter of 2025, E-commerce Partner B (see Note 17), who acts as the payment processor and merchant of record for a subset of Avast customers, missed its contractually required payment. Additional contractually required payments were missed in the first few weeks of our fourth fiscal quarter ending March 28, 2025. In January 2025, E-commerce partner B cited financial difficulties, which raised our concerns about its solvency and ability to comply with the contractual terms of the agreement. On January 16, 2025, we notified them of our termination of the agreement. After further settlement discussions, the parties agreed to resolve all disputes between them, including but not limited to claims of breach of the agreement, and the parties entered into a legal settlement agreement. Under the terms of the legal settlement agreement, E-commerce partner B is required to transfer all of our customer information to us, and we released our claims to valid outstanding accounts receivable (net of any fees payable) from E-commerce partner B, totaling $66 million as of January 17, 2025, along with customary releases for the parties. In the third quarter of fiscal 2025, $42 million of accounts receivable existing on December 27, 2024 from E-commerce partner B were charged off as general and administrative expense. Accounts receivable of $24 million generated from E-commerce Partner B in our fourth fiscal quarter of 2025 will be charged off in that quarter.

E-commerce partner B billed our customers $139 million during the three months ended December 27, 2024, primarily for annual renewals for a subset of Avast customers. We immediately began the process of migrating these customers to our proprietary eStore platform and expect to complete a significant portion of the migration process by March 2025.

Upon transfer of all data, we do not anticipate any material impact on our customer base or revenue. However, the seamless processing of customer transactions is critical to our business operations. Any disruption in our billing and collection processes could adversely affect the customer experience, result in a loss of revenue, and materially impact our financial position, results of operations, and cash flows.

Fiscal 2025 Acquisition

On January 28, 2025, we acquired all the outstanding shares of a technology-enabled personal finance education and recommendation platform for an aggregate purchase price of $85 million in cash. While this acquisition is immaterial to Gen’s overall financial results, it is expected to enhance our capabilities in the cyber safety, identity protection (LifeLock), and financial wellness business.