eastunder
8 years ago
Symantec acquires web security firm Blue Coat
Mike Snider, USA TODAY 8:39 a.m. EDT June 13, 2016
http://www.usatoday.com/story/tech/news/2016/06/13/symantec-acquires-web-security-firm-blue-coat/85818900/
(Photo: Michele Tantussi, Bloomberg)
Computer security software company Symantec is bolstering its web protection portfolio with the acquisition of Web security firm Blue Coat.
Mountain View, Calif.-based Symantec will acquire Blue Coat for about $4.6 billion in cash, the two companies announced Monday. Both boards of directors have approved the deal, which is expected to close in the third quarter of 2016.
Blue Coat CEO Greg Clark will become CEO of Symantec and join the board when the deal closes. Symantec has had some CEO issues in recent years. It fired CEO Steve Bennett in March 2014 and subsequent CEO Michael Brown stepped down in April.
βWith this transaction, we will have the scale, portfolio and resources necessary to usher in a new era of innovation designed to help protect large customers and individual consumers against insider threats and sophisticated cybercriminals,β said Symantec Chairman Dan Schulman said in a statement. "In addition to a proven track record of delivering scale and profitable growth, Greg brings significant leadership experience, deep security expertise and a history of successfully integrating companies into a single portfolio; he is the right person to lead Symantec as we advance our position as the leader in cybersecurity.
The Sunnyvale, Calif. Blue Coat had filed for its own initial public offering earlier this month. The company generated revenue of $598 million in its fiscal year ending April 30, 2016.
eastunder
8 years ago
Symantec's (SYMC) Blue Coat Deal Looks Tentatively Good, but Some Risks Remain - BTIG
BTIG affirms Symantec (NASDAQ: SYMC) with a Neutral rating after the company announced entering an agreement to acquire Blue Coat for about $4.65 billion.
Analyst Joel Fishbein commented Monday: The deal brings immediate benefits for SYMC: 1) increased enterprise security exposure, as pro forma enterprise security revenues increase to 62% of the base (vs. ~54% as of F16); 2) better focus on highergrowth security segments (Gartner estimates that 85% of large enterprises will be using cloud access security brokers, vs. <5% today); 3) significant accretion, as FY18 EPS is expected to jump to $1.70-$1.80 vs. $1.37 prior (+28%); and 4) a new CEO in Greg Clark with a deep software background and proven track record of turning around and growing an enterprise-focused security company.
At the surface, the transformative deal looks like a good one. However, there are obvious risks around a transaction of this size, notably the product and sales integration required, and if this can truly position SYMC to achieve its goal of being the leading enterprise cyber security company
eastunder
9 years ago
Of course it did. Don't they all?
Upgraded today, btw.
http://www.bloomberg.com/news/articles/2016-03-11/symantec-jumps-on-rbc-upgrade-as-security-products-demand-rises?cmpid=yhoo.headline
Symantec Jumps on RBC Upgrade as Security Products Demand Rises
by
Aleksandra Gjorgievska
March 11, 2016 β 8:09 AM MST
Symantec Corp. shares jumped Friday after RBC Capital Markets Corp. upgraded the company to buy from neutral amid growing demand for security products.
The stock rose 3.7 percent to $18.35 at the market open in New York. The shares had fallen 25 percent in the past year.
Symantec, which makes cybersecurity software, is a βvalue stock that doesnβt have to get a lot right for shares to move higher,β RBC analyst Matthew Hedberg wrote in a note. RBCβs price target of $23 is unchanged.
Low investor expectations, the opportunity to cross-sell new products and automatic renewals that may slow declines in the consumer security business are among the reasons for the upgrade, according to the note. The demand for security products is rising as large companies seek to protect data on more devices, Hedberg wrote.
Mountain View, California-based Symantecβs new Advanced Threat Protection software provides the company with its biggest revenue opportunity this year and next, Chief Financial Officer Thomas Seifert said in an interview in Berlin Friday. The company is on the lookout for acquisitions to gain additional technology and accelerate its unified security strategy, Seifert said.
βWith what seems like hundreds of vendors focused on end-point security, we think Symantec has a seat at the table with a large customer base and could become a consolidation play as Intel/McAfee struggles,β Hedberg wrote in the note.