Symantec on Sunday agreed to amass LifeLock, a shopper identity-theft defend service, for $2.three billion to kind the "world's largest digital security platform for shoppers and households."
The deal, which was authorized by the boards of administrators of each firms, is anticipated to shut within the first calendar quarter of 2017, topic to customary closing circumstances together with LifeLock stockholder approval.
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"As everyone knows, shopper cybercrime has reached disaster ranges. LifeLock is a number one supplier of identification and fraud safety companies, with over four.four million highly-satisfied members and rising. With the mixture of Norton and LifeLock, we can ship complete cyber protection for shoppers," mentioned Greg Clark, Symantec's CEO.
"This acquisition marks the transformation of the buyer safety trade from malware safety to the broader class of Digital Security for shoppers," Clark continued.
Symantec will finance the acquisition with money on the stability sheet and $750 million of latest debt. LifeLock is believed to have greater than four.four million prospects.
Sources chatting with Bloomberg mentioned personal fairness companies Permira, TPG and Evergreen Coast Capital additionally pursued LifeLock, who was in buyout talks for a number of months.
Symantec believes its Norton Safety and LifeLock creates "the world's largest shopper safety enterprise with over $2.three billion in annual income primarily based on final fiscal yr revenues for each firms." It believes there's an addressable market of 80 million folks turning into extra involved with cyber safety.
Symantec's board of administrators has additionally elevated the corporate's share repurchase authorization from roughly $800 million to $1.three billion, with as much as $500 million in repurchases focused by the top of fiscal 2017.
"After an intensive evaluate of a broad vary of options, our board of administrators unanimously concluded that Symantec is the perfect strategic accomplice for LifeLock and gives our shareholders a big premium for his or her funding, at closing," mentioned Hilary Schneider, CEO of LifeLock.
"Along with Symantec we are able to deploy enhanced expertise and analytics to offer our prospects with unparalleled data and identification safety companies," Schneider continued. "We're more than happy to have reached an end result that serves the perfect pursuits of all LifeLock stakeholders."
LifeLock grew to become a public firm in October 2012. Shares have risen roughly 40 p.c this yr, giving it a market cap of roughly $1.95 billion. It has 855 staff, as of October 31, 2016, and relies in Tempe, Ariz. LifeLock additionally has places of work in San Diego, San Francisco, and Mountain View, Calif.
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