Symantec to Buy Identity Theft Protection Company LifeLock -- Source
November 20 2016 - 9:04PM
Dow Jones News
By Robert McMillan
Computer-security-software maker Symantec Corp. has agreed to
acquire LifeLock Inc., a seller of identity-theft protection
services, for $2.3 billion in cash, according to a person familiar
with the matter.
The deal will value LifeLock at $24 a share, a 16% premium to
its Friday price of $20.75, near its 52-week high.
The deal broadens Symantec's portfolio at a time when the
34-year-old company is looking to break out beyond its traditional
strength in antivirus software.
Symantec hopes to integrate LifeLock with its Norton antivirus
businesses into a single product line after the acquisition closes,
expected early next year.
LifeLock's has more than 4.4 million subscribers, a user base
that the company has built through aggressive marketing. Last year,
the company agreed to pay $113 million to settle deceptive
advertising charges brought by the Federal Trade Commission.
LifeLock neither confirmed nor denied the FTC allegations.
Symantec has struggled to grow, even as computer security
emerged as a top concern for executives. Former Chief Executive
Michael Brown stepped down in April following disappointing
financial results. Two months later, the company said it would
acquire Blue Coat Systems Inc. in a $4.65 billion deal, the
company's largest acquisition since its 2005 purchase of Veritas
Software.
In January, Symantec sold its Veritas data-storage unit to
Carlyle Group for $7.4 billion.
Dana Cimilluca contributed to this article.
Write to Robert McMillan at Robert.Mcmillan@wsj.com
(END) Dow Jones Newswires
November 20, 2016 20:49 ET (01:49 GMT)
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