Symantec buys Blue Coat for $4.65bn
Deal will create largest enterprise security provider by revenue
Blue Coat is set to be acquired by security specialist Symantec, in a $4.65 billion cash deal.
The combined company will become the largest enterprise security provider by revenues, once the deal is approved.
As part of the deal, Blue Coat CEO Greg Clark will take on the currently-unfilled CEO role at Symantec, after the resignation of Mike Brown in April this year.
In a statement, Symantec said that the acquisition would give the company a wider potential customer base, to include Blue Coat's networks and cloud security offerings to secure hundreds of millions of endpoints and servers, and billions of email and web transactions. The deal will boost Symantec's ability to protect customers who are using cloud-based solutions, and will also combine R&D efforts in cybersecurity with a workforce of over 3,000 engineers and researchers.
Dan Schulman, chairman of Symantec said: "With this transaction, we will have the scale, portfolio and resources necessary to usher in a new era of innovation designed to help protect large customers and individual consumers against insider threats and sophisticated cybercriminals. Together, we will be best positioned to address the ever-evolving threat landscape, the massive changes introduced by the shift to mobile and cloud, and the challenges created by regulatory and privacy concerns.
"Greg and the entire Blue Coat leadership team have done an exceptional job of strengthening, growing and scaling their business. In addition to a proven track record of delivering scale and profitable growth, Greg brings significant leadership experience, deep security expertise and a history of successfully integrating companies into a single portfolio; he is the right person to lead Symantec as we advance our position as the leader in cybersecurity," Schulman added.
Greg Clark, chief executive officer of Blue Coat, commented: "Today, Symantec keeps global enterprises, governments and individual consumers protected with solutions across threat protection, information protection and managed services. Likewise, Blue Coat is the trusted source for protecting billions of web transactions daily and is the clear leader in the growing cloud security market. Once combined, we will offer customers around the world - from large enterprises and governments to individual consumers - unrivalled threat protection and unmatched cloud security. With employees of Blue Coat and Symantec coming together, we will be well positioned to drive meaningful growth and push the boundaries of innovation. I am very excited about the opportunity to join Symantec as CEO and look forward to working with the strongest, deepest team in security to realize the many strategic and financial benefits this transaction will create."
Thomas Seifert, chief financial officer of Symantec, added: "With the $150 million in expected annual net cost synergies, in addition to our previously announced $400 million in planned net cost savings, this transaction will allow Symantec to improve our profitability while continuing to invest in innovation and drive growth. The acquisition is expected to be significantly accretive to our non-GAAP earnings creating meaningful value for our shareholders. We are reiterating our first quarter guidance and maintaining our commitment to our previously announced $5.5 billion capital return program, of which the remaining $1.3 billion will be returned by the end of the current fiscal year. We will also continue our practice of paying a quarterly dividend to our shareholders."