Symantec to Sell Veritas for $8 Billion
Cybersecurity company is selling the data storage business to Carlyle-led investor group
Carlyle teamed up with Singapore sovereign-wealth fund GIC and other investors on the deal.
Symantec had been exploring strategic options for the business as an alternative to its plan to split into two publicly traded companies. The Wall Street Journal reported in April that Symantec had contacted private-equity firms and possible industry bidders about buying Veritas, which Symantec bought in 2005 in an all-stock deal valued around $13.5 billion.
In a news release, Chief Executive Michael A. Brown said Tuesday that the sale allows Symantec to focus on growing its security business.
Symantec, which in the late 1980s pioneered computer security with its antivirus software, last year announced it would split its cybersecurity and information-management businesses into two publicly traded companies. In January, it said the information-management company would be named Veritas Technologies Corp.
Mountain View, Calif.-based Symantec has struggled to shift its consumer-security business to subscriptions from one-time license sales.
Symantec expects $6.3 billion in cash proceeds from the sale and said it has added $1.5 billion to its share buyback program.
The deal is expected to close by Jan. 1.
Separately, Carlyle named Bill Coleman as chief executive and Bill Krause as chairman of Veritas.