Symantec To Acquire LifeLock For USD 2.3 Bn
After completing the much talked about Blue Coat acquisition, global security company Symantec has announced to acquire Identity protection solution company, LifeLock for USD 2.3 billion. The acquisition hopes to prop up sales at its Norton cybersecurity unit.
“As we all know, consumer cybercrime has reached crisis levels. LifeLock is a leading provider of identity and fraud protection services, with over 4.4 million highly-satisfied members and growing. With the combination of Norton and LifeLock, we will be able to deliver comprehensive cyber defense for consumers,” said Greg Clark, Symantec’s CEO.
“This acquisition marks the transformation of the consumer security industry from malware protection to the broader category of Digital Safety for consumers”, he added.
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.
In August, it bought Blue Coat Inc, which helps firms maintain security over the internet, in a USD 4.65 billion deal. While on one hand the Mountain View, California-based company is strengthening its security business, it 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 for USD 7.4 billion. Technology-focused firm Silver Lake Partners has also made a USD 1 billion investment in the company in two parts this year.
“People’s identity and data are prime targets of cybercrime. The security industry must step up and defend through innovation and vigilance,” said Dan Schulman, Symantec’s Chairman of the Board. “With the acquisition of LifeLock, Symantec adds a new dimension to its protection capabilities to address the expanding needs of the consumer marketplace.”
“After a thorough review of a broad range of alternatives, our board of directors unanimously concluded that Symantec is the ideal strategic partner for LifeLock and offers our shareholders a significant premium for their investment, at closing,” said Hilary Schneider, CEO of LifeLock.
“Together with Symantec we can deploy enhanced technology and analytics to provide our customers with unparalleled information and identity protection services. We are very pleased to have reached an outcome that serves the best interests of all LifeLock stakeholders”, he added.
The deal, which was approved by the boards of directors of both companies, is expected to close in the first calendar quarter of 2017, subject to customary closing conditions including LifeLock stockholder approval. Symantec was advised by Citigroup and JP Morgan, along with Bank of America, Barclays Plc, and Wells Fargo. LifeLock was advised by Goldman Sachs.
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