Symantec Corporation (NASDAQ:SYMC) Agrees To Acquire LifeLock Inc For $2.4 Billion

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In the wake of a series of company buyouts, Symantec Corporation (NASDAQ:SYMC) has decided to acquire Lifelock Inc (NYSE:LOCK). Rumor has it that the computer-security-software maker will part with about $2.4 billion to settle the deal, which is likely to be completed soon.  Several companies have been eyeing the potential sale of the U.S. identity theft protection services company. Goldman Sachs Group Inc (NYSE:GS) is spearheading the transaction.

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People who are knowledgeable about the process confirmed that other than Symantec, other private bidders’ included the Evergreen Coast Capital, classified equity firms Permira, TPG and the new takeover arm of hedge fund Elliott Management. However, neither Symantec nor LifeLock was willing to indulge in further details about the transaction.

The deal will expand Symantec’s consumer offerings

Symantec has been heavily orientated towards cyber security. This justifies the company’s earlier $4.65 billion deal of acquiring Blue Coat Systems Inc (NASDAQ:BCSI) from Bain Capital, which is involved in maintaining other companies’ safety over the internet. Symantec has been in business for close to 34 years. Hence its new deal is expected to enhance its portfolio. Its goal is to break beyond its traditional strength in antivirus software. The first agenda will be the integration of LifeLock with its Norton antivirus businesses into a single product line.

It has not been easy for Symantec to get where it is now. The company has suffered various challenges, including the exit of former Chief Executive Michael Brown as a result of disappointing financial results.  It has had to sell its Veritas data storage unit to Carlyle Group for $7.4 billion.

But LifeLock has also been aggressive in marketing

The Tempe, Arizona based company has also not been in its comfort zone. LifeLock’s previous aggressive marketing has achieved more than 4.4 million member subscriptions. Apart from offering services like monitoring new account openings and credit-related applications, it also works with government agencies, merchants, and creditors to reduce the impact of identity theft.

However, all has not been smooth sailing, though things have been going relatively well. Last year, the company was put to task by the Federal Trade Commission. It was alleged to have misleading advertising charges, which occasioned a payment of $113 million. Nonetheless, it remains to be seen what else Symantec is out to offer.

Symantec stock was trading at $23.75, a decrease of $0.08 or 0.34% while Lifelock was trading at  $20.75 witnessing an increase of $0.03 or 0.14%

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