Traditionally focused on software-based security, including their popular Symantec Antivirus programs, the team with Symantec has since diversified their portfolio. However, at least one of their latest endeavors, which involves their information management solution known as Veritas, has been sold. In fact, a firm known as The Carlyle Group has recently completed the purchase of Veritas for a total of $5.3 billion.
While the details of the pending sale were first released in August 2015, officials with Symantec and Veritas have only recently finalized the deal. The move is expected to bring Symantec's focus back to software-based security without affecting the established reputation of the Veritas brand.
Furthermore, Symantec will also return more than $4 billion in previous investments to its shareholders by the close of March 2017. Included in these investments is a total of $500 million for an accelerated share repurchase initiative, $1.8 billion from a former share repurchase program and another $2 billion in capital return.
Michael Brown, president and CEO with Symantec, explained how the deal is beneficial to everyone involved by saying: "This transaction strengthens our financial foundation, paving the way for Symantec to grow its security business and increase its lead as the world’s largest cybersecurity company." He continued by saying: "We believe the agreement with the investors, including The Carlyle Group and GIC, delivers an attractive and certain value for the Veritas business, and is in the best interests of all stakeholders."
According to representatives with both companies, Symantec had been prepping Veritas for independent operations as soon as the deal was announced in 2015. As such, officials with Symantec are highly optimistic about the future continuity and ongoing success of Veritas as well as its new owners with the Carlyle Group, a popular investment firm based out of Washington, D.C.
Moreover, The Carlyle Group has already begun to implement their own management of Veritas by naming Bill Coleman as CEO and Bill Krause as chairman. Cam Dyer and Patrick McCarter, managing directors with The Carlyle Group, released a statement reading: "Bill Coleman is a proven leader whose strategic vision and strong execution skills will leverage Veritas’ new-found position as a private, standalone company to grow the firm and provide customers an integrated information management solution."
Upon the recent closure of the deal with The Carlyle Group, Brown added to his comments by saying: "Symantec now has a clear path forward as the global leader in cybersecurity. With the Veritas transaction completed, Symantec has the increased financial flexibility to maximize shareholder value through returning significant capital to shareholders and to consider acquisition opportunities that will accelerate our unified security strategy."
The recent deal, which was only finalized as of January 1, 2016, effectively puts an end to a 12-year relationship between Symantec and Veritas. Considering Symantec's significant investment into the brand, as well as the lack of any real return, IT experts agree that this move probably should have happened sooner. Nonetheless, it's a move that should help Symantec return to their roots and restore their place in the software security niche.
Symantec Sells Veritas for Billions
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