The US-based desktop/computer security software provider conglomerate Symantec made an announcement of acquiring LifeLock in a 2.3 billion USD deal, on Sunday. The firm happens to be an identity theft protection services provider which will further help the conglomerate create world’s largest digital safety platform for consumers and other enterprises, through Norton cyber security unit.
Symantec hopes to boost up its sales in terms of cyber securities provided in a personal computer in bundles. Norton may be a world renowned anti-virus device for desktops where it’s sales have not dropped in the past few years but still increasing demand for smartphones, tabs, laptops, etc has definitely deteriorated the sales and purchases of personal computers. The company thus bearing the loss have suffered a lot since the drop in sales despite Norton remains profit churner.
According to Greg Clark, Chief Executive, Symantec, reportedly stated to Reuters, as (Norton) had been declining with the declines in PC market share. This acquisition brings $660 million in revenue to the consumer business and returns it to longer sustainable growth.
The respective purchases will offer to diversify itself thus looking over to monitor new account openings, credit-related application, process to alert consumers for security threat, unauthorised usage of their personal account or identity, and so on. The conglomerate plans to work with creditors, corporates, government offices, agencies, so as to remediate the impact of theft.
Symantec in the past years had created a market of itself in the identity security segment but LifeLock has greater impact as it has 4.4 million members which comes as a huge gap for the conglomerate. The acquisition is planned to place in cash format as the transaction process will be added in the balance sheet as well as $750 million in current debts section. The board of directors’ has increased the authorisation of share repurchases from 800 million USD to 1.3 billion USD.
The increment of near about $500 million in the financial year ending 2016-17 will further boost in keep targets of repurchases in Symantec. At present, various financial services such as JP Morgan, Citibank, Bank of America, Barclays, Merrill Lynch, etc work as financial advisers to Symantec eventually providing debt financing commitments to the conglomerate.