LifeLock will be changing owners as the identity theft protection services company will be acquired by the Norton developer, Symantec.
Symantec is best known for its security software, namely the Norton Antivirus program. As most of the Norton antivirus software is included in the personal computer market, the rise of mobile devices seems to have affected it as well.
Although the company is still profitable, its numbers seem to be falling as more users are turning towards the smartphone and tablets market.
Greg Clark, the Symantec Chief Executive, stated in an interview that the LifeLock acquisition is expected to return Symantec to a longer sustainable growth.
Symantec will be buying LifeLock for a $2.3 billion sum as the company hopes to increase its Norton cyber security division.
The US-based identity theft protection services company sale is expected to bring in about $660 million in revenue for Symantec in the consumer business.
The LifeLock buy should also help diversify the Symantec range of products as the company has been recently acquiring different software programs.
In August, this year, the Norton developer also bought Blue Coat Inc. The $4.65 billion deal saw the acquisition of a software which helps firms preserve and keep their Internet security.
LifeLock will be an import acquisition as according to Fran Rosch, the Norton Business Unit Executive Vice President, they have quite an important user number.
According to Rosch Symantec did not reach LifeLock’s 4.4 million members numbers in the identity security area.
LifeLock is a United States company which offers quite a range of identity theft protection services. Amongst them, one can beneficiate from a monitoring of the new account openings.
Users can also receive alerts when unauthorized credit-related applications try to use their identity.
Symantec was advised in the sale by JP Morgan and Citigroup, and also Barclays Plc, Wells Fargo, and the Bank of America.
The company will probably be financing the buy with cash on balance sheet transactions. It will also probably make use of a new debt coming up to $750 million.
Symantec, which is based in Mountain View, California, has recently been detaching itself from what are believed to be more commoditized services.
The moving away process was initiated by their selling, back in January, of Veritas. The data storage business was then acquired by the Carlyle Group LP. The private equity firm acquired the Symantec Veritas business for $7.4 billion.
Symantec has also beneficiated from Silver Lake Partners investments. The technology-focused company invested a $1 billion sum in the company this year, which was sent in two parts.
The new LifeLock acquisition will bring a number of changes, mostly to the user numbers, but is not estimated to have an immediate material impact.
According to the company, the recent buy will not impact their 2017 financial results. Symantec also went ahead and reaffirmed its fiscal year guidance for both 2017 and 2018.
As Elliot Management Corp, the activist hedge fund has been pushing LifeLock towards exploring its options, the company was also advised in the sale by Goldman Sachs.
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