Symantec offers Blue Coat for $ 4.65 billion and becomes a cybersecurity giant

by bold-lichterman

Symantec, an American group specializing in IT security, has just concluded a definitive agreement for the acquisition of Blue coat for a total amount of around 4.65 billion dollars. Approved by the boards of directors of both companies, the transaction is expected to be finalized during the third quarter of 2016. On this occasion, Greg Clark will become CEO of Symantec, a position he held within Blue Coat.

Founded in 1982 by Gene Meltser and Steffen Low, Symantec provides security, storage and systems management solutions for individuals, businesses and governments. Among the feats of arms of the American company, it distinguished itself by publishing the Norton antivirus software. In this sector, Symantec has to face competition from many players, such as the American McAfee, the Czech Avast Software, the Russian Kaspersky or even the Israeli Check Point.

62% of turnover from business services

With the acquisition of Blue Coat, Symantec wishes to strengthen itself in the cybersecurity market. This operation comes after the sale of its subsidiary Veritas last January for 7.4 billion dollars. From now on, the turnover of the American company is expected to reach $ 4.4 billion (3.9 billion euros non-GAAP), of which 62% will come from business services.

The combined company will be based in Mountain View, Calif., And will benefit from $ 750 million reinvested by Bain Capital, majority shareholder of Blue Coat, in the form of convertible bonds. Direct consequence of this operation, David Humphrey, managing director of Bain Capital Private Equity, will join the Symantec board of directors. In addition, Silver Lake Partners has decided to acquire the equivalent of $ 500 million of convertible bonds, doubling its investment in the American firm to establish it at one billion dollars.

With $ 150 million in synergies in the form of annual net expected costs, in addition to the previously announced $ 400 million in expected net savings, this transaction will allow Symantec to improve our profitability while continuing to invest in innovation. and drain growth”, Explains Thomas Seifert, Chief Financial Officer of Symantec.