Symantec said it would acquire U.S. identity theft protection services company LifeLock for $2.3 billion, in a deal that it hopes will prop up sales at its Norton cybersecurity unit.<\/p>\n
Symantec\u2019s security software often comes bundled with personal computers. As a result, the company has suffered as consumers use mobile devices more than traditional computers. While Norton remains profitable, its sales have been falling.<\/p>\n
\u201c(Norton) had been declining with the declines in PC market share. This acquisition brings $660 million in revenue to the consumer business and returns it to longer sustainable growth,\u201d Symantec Chief Executive Greg Clark said in an interview.<\/p>\n
Reuters was first to report earlier on Sunday that Symantec was in the lead to acquire LifeLock.<\/p>\n
Symantec\u2019s purchase of LifeLock is in line with its efforts to diversify its offerings. In August, it bought Blue Coat Inc, which helps firms maintain security over the internet, in a $4.65 billion deal. Clark previously held the top job at Blue Coat, and made the switch after the deal closed.<\/p>\n
Based in Tempe, Arizona, LifeLock offers services such as monitoring new account openings and credit-related applications in order to alert consumers about unauthorized use of their identity. It also works with government agencies, merchants and creditors to remediate the impact of identity theft.<\/p>\n
Fran Rosch, executive vice president of Norton Business Unit, said that Symantec had dabbled in identity security but had nowhere near Lifelock\u2019s 4.4 million members.<\/p>\n
\u201cWe had to extend our value proposition. It was a no brainer for us to get back to growth,\u201d Rosch said.<\/p>\n
Symantec expects to finance the transaction with cash on balance sheet and $750 million of new debt.<\/p>\n
The Mountain View, California-based company has been moving away from what is sees as more commoditized services, selling its data storage business Veritas in January to private equity firm Carlyle Group LP <CG.O> for $7.4 billion. Technology-focused firm Silver Lake Partners has also made a $1 billion investment in the company in two parts this year.<\/p>\n
Symantec said the LifeLock deal is not expected to have a material impact on its financial results next year, and reaffirmed its fiscal year 2017 and 2018 guidance. The deal also represents a victory for activist hedge fund Elliott Management Corp, which had pushed LifeLock to explore its options.<\/p>\n
Symantec was advised by Citigroup and JP Morgan, along with Bank of America, Barclays Plc , and Wells Fargo. LifeLock was advised by Goldman Sachs.<\/p>\n
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Source: Venture Beat<\/p>\n","protected":false},"excerpt":{"rendered":"
Symantec said it would acquire U.S. identity theft protection services company LifeLock for $2.3 billion, in a deal that it hopes will prop up sales at its Norton cybersecurity unit. Symantec\u2019s security software often comes bundled with personal computers. As a result, the company has suffered as consumers use mobile devices more than traditional computers. […]<\/p>\n","protected":false},"author":5,"featured_media":270441,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[106],"tags":[8488,13796,13797,13798,5468],"yoast_head":"\n