Symantec Corp, a US-based computer security software provider, on Sunday announced that it will acquire identity theft protection company LifeLock for an enterprise deal of $2.3 billion or $24 per share. The deal is expected to close in the first quarter of next year, subject to LifeLock's shareholders approval.
The deal would expand Symantec's portfolio at a time when the 34-year-old firm is looking to break away from the traditional anti-virus software. California-based Symantec said that the deal with LifeLock would not have any impact on its financial results for next year and has "reaffirmed" its revenue guidance for 2017 and 2018.
"As we all know, consumer cyber-crime 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 defence for consumers," Greg Clark, Symantec's CEO said in a statement.
"This acquisition marks the transformation of the consumer security industry from malware protection to the broader category of Digital Safety for consumers," he added.
The combination of both the companies is expected to create the world's largest consumer security business.
"Together with Symantec we can deploy enhanced technology and analytics to provide our customers with unparalleled information and identity protection services. We are pleased to have reached an outcome that serves the best interests of all LifeLock stakeholders," Hilary Schneider, CEO of LifeLock, said in the statement.
Symantec expects to finance the transaction with cash on the balance sheet and $750 million of new debt. Symantec's board of directors has also increased the company's share repurchase authorisation from about $800 million to $1.3 billion, with up to $500 million in repurchases targeted by the end of financial year 2017.
Barclays, Bank of America, Citibank, JP Morgan, Merrill Lynch and Wells Fargo are acting as financial advisers and are providing debt financing commitments to Symantec. Fenwick & West and Simpson Thacher & Bartlett are acting as legal advisers.