DigiCert has moved a step closer to finalizing the acquisition of Symantec Corporation (NASDAQ:SYMC) SSL issuance certificate business. The internet security company’s banks have opened discussions with a number of prospective investors that they hope will provide part of the finances needed to complete the acquisition. The deal should close by Q3 2018.
DigiCert Acquisition
Under the terms of the agreement, DigiCert is to pay Symantec $950 million in upfront cash, in addition to a 30% stake in DigiCert stock. Initial reports indicate that UBS Group AG (USA) (NYSE:UBS) will lead a syndicate of underwriters for the deal that includes the likes of Credit Suisse Group AG (ADR) (NYSE:CS), Jefferies, Goldman Sachs Group Inc. (NYSE:GS), and Macquarie Group.
The products that DigiCert is acquiring did generate $350 million in Symantec’s 2017 fiscal year, representing a 41% year over year growth.
Symantec CEO, Gregory S. Clark, expects the divestiture to sharpen the company’s focus on Enterprise Security business. The selloff should also lead to better service for punters in addition to helping strengthen the company’s bottom line.
Merger Synergies
A merger of DigiCert’s offerings with Symantec’s website security solutions will result in enhanced technology platform with market leading innovations and customer support. DigiCert should be able to gain capabilities that it can use to pursue growth opportunities on the Internet of Things as it continues to explore ways of coming with innovations in the SSL market.
Symantec customers should enjoy full browser compatibility and trust, thanks to a merger of Symantec’s SSL issuance certificates with DigiCert’s platform that is widely used in the enterprise sector.
“We look forward to building a great security company and supporting all of Symantec’s and DigiCert’s customers well into the future. We have assembled the best team in the industry to help us deliver even better security solutions and service to our customers,” said DigiCert CEO, John Merrill.
The merger, however, comes at a time when Symantec is entangled in a fierce feud with Google and other web browsers in relation to the way it validates web certificates. The companies are Pushing Symantec to change its web certification technology and business practices.
Symantec Corporation was down by 0.56% in Tuesday’s trading session to end the day at $28.41 a share.
