Symantec buys LifeLock, a company that provides identity theft protection service, for $24 a share which totals to $2.3 billion. The offer is 16 percent above Friday’s closing price.
Symantec is well known for security services and often bundled with personal computers. They are also the creators of Norton antivirus software. As technology progresses, a huge amount of people using personal computers is diminishing as they tend to shift to a much more portable substitute, mobiles phones. Although Norton remains successful, its sales have been falling.
The company is still in a flat base with a 25.82 buy point even after last week’s 5 percent decline in its share accompanied with the buzz and news about the future acquisition of LifeLock.
“(Norton) had been declining with the declines in PC market share. This acquisition brings $660 million in revenue to the consumer business and returns it to longer sustainable growth,” Symantec Chief Executive Greg Clark in an interview.
LifeLock’s shares have escalated to 45 percent through Friday, giving it a market of value of around $1.95 billion. The company has 4.4 million members at the end of their third quarter with an up of 8 percent year on year.
Among Other Cybersecurity Firms
Palo Alto Networks (PANW), a fellow cybersecurity firm report of 51% earnings per share again to 53 cents, with revenue up 34% to $400 million. PANW cleared a buy point of 161.35 on Friday. Proofpoint (PFPT) broke with a 79.88 buy point on November 11 and Cyber Ark Software (CYBR) with a buy point of 58.38.
From Antivirus to Cyber Security
The company sees to transition from an antivirus company to a cyber-security one. It started to acquire companies such as Blue Coat Inc., who specializes in network and cloud protection. The acquisition from Bain Capital this year was in a $4.65 billion.
“With the combination of Norton and LifeLock, we will be able to deliver comprehensive cyber defense for consumers,” Symantec Chief Executive Officer Greg Clark noted. “This acquisition marks the transformation of the consumer security industry from malware protection to the broader category of digital safety for consumers.”
Symantec eyes on diversifying its offerings to boost their sale and expand their target audiences. The company started from personal security through antivirus application to a total cyber-security platform from the acquisition of both Blue Coat and LifeLock.
The company said that the $2.3 billion with LifeLock won’t have a material impact on its financial results till next year, and reaffirmed its fiscal year 2017 and 2018 guidance.
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