Symantec Sells Veritas Business for $8 Billion

Software security company Symantec is selling off its information management business for a whopping $8 billion. Investors led by The Carlyle Group, together with Singapore sovereign wealth fund GIC and other co-investors, are acquiring Veritas in an all-cash deal.

The ink is set to dry on January 1, 2016. When it does, Symantec said it expects to take in about $6.3 billion in net cash proceeds, which it will return to shareholders and invest in its core business. Specifically, the company has authorized a $1.5 billion increase to its share repurchasing program and expects to return $2 billion to shareholders over an 18-month period.

EUThis transaction strengthens our financial foundation, paving the way for Symantec to grow its security business and increase its lead as the worldEUs largest cybersecurity company,EU said Michael Brown, Symantec president and CEO. EUWe 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.EU

New Leadership Appointed

After exploring all the options, the board of directors concluded a disposition made the most sense. SymantecEUs reasoning: the all-cash deal gives the company plenty of funds to keep investing in the fast-growth security products and services market.

The company has been preparing Veritas to operate independently and evolving its business strategy since the board first announced it would separate the company, said Symantec Executive Vice President and Veritas General Manager John Gannon. He said he's convinced the company will be in good hands with its new owners and will continue to provide EUinformation management solutions to serve the worldEUs largest and most complex environments, including multiple cloud deployments, managed services and on-premise infrastructure.EU

The Carlyle Group isnEUt wasting any time preparing for the new Veritas. The company announced that when the...

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