Symantec to Buy LifeLock for $2.3 Billion to Add ID
Protection
By Kiel Porter and Beth Jinks November 20, 2016 — 10:06 PM EST
Symantec Corp., one of the world’s largest cybersecurity
companies, agreed to buy LifeLock Inc. for about $2.3 billion including debt to
expand in services for identity protection.
The offer for LifeLock values its shares at $24 apiece, according
to a Business Wire statement. The offer is 16 percent above Friday’s closing
price. The Tempe, Arizona-based company was pursued by bidders including
private equity firms Permira, TPG and Evergreen Coast Capital, the new buyout
arm of hedge fund Elliott Management, according to people familiar with the
matter, who asked not to be named because the process is private.
Symantec, the maker of Norton antivirus software, has
been re-orientating its business more heavily toward cybersecurity, acquiring Blue
Coat Inc. from Bain Capital this year in a $4.65 billion deal. Earlier in the
year, Mountain View, California-based Symantec sold data storage unit Veritas
to Carlyle Group LP for $7.4 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 said in the statement. “This acquisition marks the
transformation of the consumer security industry from malware protection to the
broader category of digital safety for consumers.”
LifeLock has been working with Goldman Sachs Group Inc.
on the potential sale for several months, people with knowledge of the process
said earlier this month. The company provides a range of identity-theft
protection services for consumers and small businesses, including credit
monitoring and alerts, according to its website.
Shares of LifeLock have risen 45 percent through Friday,
giving it a market value of about $1.95 billion.
Elliott’s activist investing arm unveiled a stake in
LifeLock in June and owns about 11 percent of the company. Another Elliott
activist target -- Mentor Graphics Corp. -- agreed to be acquired by Siemens AG
for $4.5 billion in a deal announced Nov. 14.
Evergreen Coast Capital, Elliott’s recently formed
private equity arm, had jointly bid for LifeLock with another buyout partner,
two of the people said. In its debut buyout deal, Evergreen agreed in June to
acquire Dell Inc.’s software unit in partnership with Francisco Partners
Management.
Citigroup Inc. and JPMorgan Chase & Co. are serving
as co-lead financial advisers to Symantec’s board, according to the statement.
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