Symantec to shop for Blue Coat for $4.7 Billion to spice up Enterprise Unit

Symantec to shop for Blue Coat for $4.7 Billion to spice up Enterprise Unit
Symantec Headquarters

Technology security firm Symantec to shop for Blue Coat for $4.65 billion (roughly Rs. 31,165 crores) in a money deal that will build Symantec’s enterprise security business.

Blue Coat helps protects companies’ web gateways from cyber-attacks, a service which will complement Symantec’s existing offerings for giant companies like email and end security, Symantec executives aforesaid in an interview on Sunday.

“Blue Coat brings capabilities from the online and for network-born threats, that combined with what we already provide can offer higher protection for our customers,” aforesaid Ajei Gopal, Symantec’s interim president and chief operative officer.

Symantec, that makes the Norton antivirus software package, has been undergoing a change over the past year. It oversubscribed its information storage unit, Veritas, for $7.4 billion (roughly Rs. 49,595 crores) to a bunch led by carlyle group lp in January to achieve the money necessary turn around its core security software business.

Chief financial officer Thomas Seifert aforesaid Symantec had been eyeing Blue Coat for a short while and wished to attend to possess the separation of the Veritas unit behind the corporate before it created a move to shop for it. He aforesaid the deal, that is anticipated to close within the third quarter, would be increasing instantly.

By shopping for Blue Coat, 62 % of Symantec’s revenue can currently return from enterprise security, and it’ll be higher positioned to compete with security players like Palo Alto Networks inc, FireEye inc and Check purpose software Technologies Ltd. Symantec can currently have $4.4 billion in combined revenue.

While it’s shifting to focus additional on enterprise security, Symantec has no immediate plans to sell its shopper unit, Seifert, the CFO aforesaid, adding that it’s a extremely profitable a part of the company.

By shopping for Blue Coat, Symantec additionally solves a leadership issue, with Blue Coat CEO Greg Clark turning into Symantec’s CEO. Symantec’s previous CEO, Michael Brown, left in April when the corporate reportable disappointing quarterly results.

Blue Coat had been making ready an initial public providing for later this summer. Its sale marks a fast turnaround for its personal equity owner, Bain Capital LLC, that acquired Blue Coat Systems inc from fellow private-equity firm Thoma Bravo LLC for $2.4 billion last year.

“We enjoyed a awfully productive partnership, and are excited to be a significant capitalist within the future of Symantec as the leading cyber-security Company within the world,” Bain managing director David Humphrey said in a statement. Humphrey can be a part of Symantec’s board because the firm in agreement to speculate $750 million in convertible notes.

Technology-focused private-equity firm Silver Lake Partners additionally in agreement to speculate $500 million in convertible notes of Symantec, that doubles its investment in Symantec to $1 billion.

Symantec monetary advisers were JP Morgan, Barclays Plc, Bank of America, Citigroup and Wells Fargo and its legal advisers were Fenwick & West and Simpson Thacher & Bartlett. Blue Coat’s monetary advisers were Goldman Sachs & Co, Morgan Stanley and Credit Suisse and its legal advisers were Ropes & grey and Wilson Sonsini Goodrich & Rosati.

The Wall Street Journal 1st reportable news of the deal Sunday.

© Thomson Reuters 2016