Symantec Corp. announced plans Sunday to acquire LifeLock Inc. for $2.3 billion in a deal that combined two computer security firms with $2.3 billion in revenue last year. Photo courtesy Negative Space CC0
MOUNTAIN VIEW, Calif., Nov. 21 (UPI) -- Symantec Corp. has announced plans to acquire LifeLock Inc. for $2.3 billion in a deal that joins two computer security firms.
Symantec, a computer security software maker based in Mountainview, Calif., will pay $24 a share for LifeLock, which sells identity theft services and is based in Tempe, Ariz., a joint company release said Sunday. On Friday, LifeLock reached a near high of $20.75 on New York Stock Exchange. Symantec opened at $23.85 on the Nasdaq after closing at $23.75 Friday
In a release, Symantec says the combination will create the world's largest consumer security business.
Symantec, a 34-year-old company, produces the Norton antivirus.
Lifelock has more than 4.4 million subscribers. But last year it agreed to pay $113 million after deceptive advertising charges were made by the Federal Trade Commission. LifeLock didn't confirm or deny the allegations.
"As we all know, consumer cybercrime has reached crisis levels," Greg Clark, Symantec's CEO, said. "This acquisition marks the transformation of the consumer security industry from malware protection to the broader category of digital safety for consumers."
In January, Symantec sold Veritas, a data-storage unit, to Carlyle Group for $7.4 billion. But in June, it announced it would acquire Blue Coat Systems Inc. for $4.65 billion, two months after Michael Brown resigned as chief executive after dismal financial results. Blue Coat sells security services delivered over the Internet, also known as "cloud" computing.
Symantec expects to close the deal in the first calendar quarter of 2017, subject to LifeLock stockholder approval.
Symantec plans to finance the transaction with cash and $750 million of new debt.
"After a thorough review of a broad range of alternatives, our board of directors unanimously concluded that Symantec is the ideal strategic partner for LifeLock and offers our shareholders a significant premium for their investment, at closing," said Hilary Schneider, CEO of LifeLock since January.
LifeLock, which was founded in 2005, has 788 employees and $587.5 million in revenue in 2015, according to financial information from the company.
Symantec has 11,000 employees and $3.6 billion in revenue in 2015, according to financial data from the company.