Reports indicate that Symantec Corporation (NASDAQ:SYMC) is considering plans to dispose of its web certification business potentially earning the cybersecurity company over $1 billion. The move could also extricate the cybersecurity firm from an ongoing feud with Google’s parent company, Alphabet Inc (NASDAQ:GOOGL).
Earlier in the year, Google accused Symantec of improperly validating its certificates. Symantec, however, hit back saying Google’s allegations were misleading and exaggerated. Last month Symantec revealed that it was undertaking a proposal presented by Google as well as other internet firms with a view to fixing the issues that had been raised concerning its website security certificates.
Most of Symantec’s web certification business was acquired seven years ago when the cybersecurity firm bought Verisign Inc at a price of $1.28 billion. On an annual basis Symantec’s web certification business generates revenues of $400 million. According to sources Symantec is holding talks with a few companies as well as PE firms concerning the potential sale.
If the sale of its website certification business succeeds this will not be the first unit of Symantec being disposed of under the transformation effort being carried out by Greg Clark, the chief executive officer of the cybersecurity firm. Last year in January Symantec sold Veritas, a data storage business, to Carlyle Group, a private equity firm.
Clark’s transformation plan for Symantec is not restricted to selling off slow-growth units but also involves acquisitions. Earlier in the year, Symantec acquired LifeLock Inc, a consumer security business, for $2.3 billion. In August last year, Symantec acquired Blue Coat Inc at a price of $4.65 billion. Symantec’s most recent acquisition is Skycure which offers a solution for cybersecurity that focuses not just on preventing cyberattacks but also predicting and detecting.
With Skycure’s specific focus being mobile security, Symantec is betting on the future where the workforce will be highly mobile and thereby requiring a cyberdefense solution that moves with them.
“Mobile is a core component of our strategy and the acquisition of Skycure is a major step forward in executing it,” said Clark.
On Tuesday shares of Symantec Corporation rose marginally by 0.03% to close the day at $29.01.