Daily Management Review

Symantec to buy Blue Coat for $ 4.65 billion


Symantec, Blue Coat companies agreed to merge, which would cost $ 4.65 billion to the developer of software for personal computers. Once the deal is done, Symantec will get not only portfolio of the world leader in web-security market products, but also a new CEO, that is, Greg Clark, now head of Blue Coat.

Martin McKeay via flickr
Martin McKeay via flickr
One of the largest in the world computer security software vendors - Symantec Corporation - intends to acquire Blue Coat Systems, which is a world’s leader in the field of web-safe. The deal, which has already been approved by the boards of directors of both IT-companies, has been valued at approximately $ 4.65 billion. The entire amount will be paid in cash, according to a joint statement of the parties.

The deal will not only strengthen Symantec’s product portfolio, but will also bring over a new CEO Greg Clark, who will lead the combined company. Recall that Symantec has been operating without a general director since the end of April, when Michael Brown left the post. The reason for his departure was unsatisfactory financial results of the software manufacturer. The corporation has recently tried to find ways to diversify its production in conditions of rising competition, as Symantec began losing the market to younger companies, such as Fire Eye and Palo Alto. From this point of view, the merger with Blue Coat looks is a very good option. According to forecasts, level of revenue of the combined company is expected to reach $ 4.4 billion already by the end of 2016. Blue Coat has shown solid results on the basis of its fiscal year, which ended on 26 April: the company's revenues for the year increased by 17% and reached $ 598 million.

Symantec intends to finance this transaction using its own funds and borrowed loans. The main creditors will be Bain Capital Private Equity, which will invest $ 750 million in the form of a convertible loan, and Silver Lake, which will increase its investment in the corporation up to $ 500 million. The total amount of loans in round figures will be $ 2.8 billion. 

source: wsj.com

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