Archivo de la categoría: Symantec

Blue Coat, News & Analysis, Symantec

Symantec acquires Blue Coat for $4.65 billion

SymantecSymantec has announced it has entered into a definitive agreement to acquire cloud security specialists Blue Coat for $4.65 billion.

Blue coat is generally accepted as the market share leader and share gainer in web security and the deal is expected to close in Q3 this year. For the year ending April 2016, Blue Coat reported revenues of $598 million, demonstrating 17% year-on-year growth, accounting for 15,000 customers worldwide.

The company’s current CEO Greg Clark will be confirmed as Symantec’s new CEO and board member upon closing of the transaction. The move to appoint Clark as the company’s new CEO may indicate a shift in strategic direction for the business, as Symantec could be viewed as one of the technology industry’s old guard.

“Today, Symantec keeps global enterprises, governments and individual consumers protected with solutions across threat protection, information protection and managed services,” said Clark. “Likewise, Blue Coat is the trusted source for protecting billions of web transactions daily and is the clear leader in the growing cloud security market. Once combined, we will offer customers around the world – from large enterprises and governments to individual consumers – unrivalled threat protection and unmatched cloud security.”

Symantec has stated it will incorporate Blue Coat capabilities to ‘define the future of cybersecurity and set the pace for innovation industrywide’. R&D investments will focus around 3,000 engineers and nine Threat Response Centres in various locations around the world.

As part of the agreement, Silver Lake has agreed to make an additional investment of $500 million, taking its total investment to $1 billion. Bain Capital has also agreed to invest an additional $750 million in the company, as well as adding David Humphrey, a Managing Director of Bain Capital Private Equity, to Symantec’s Board of Directors.

“With 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,” said Dan Schulman, Chairman of Symantec. “Together, we will be best positioned to address the ever-evolving threat landscape, the massive changes introduced by the shift to mobile and cloud, and the challenges created by regulatory and privacy concerns.”

GIC, Information Management, John Gannon, M&A, Michael A. Brown, News & Analysis, Symantec, The Carlyle Group, Vendor, Veritas

Symantec to sell IM business Vertias for $8.9bn

Symantec is selling its IM business to an investor consoritum

Symantec is selling its IM business to an investor consoritum and refocusing on security

Digital security heavyweight Symantec announced this week it would sell its information management business, Veritas, to a group led by The Carlyle Group together with GIC, Singapore’s sovereign wealth fund, for a total of $8.3bn.

The move confirms Symantec will continue to focus on security following the announcement last October that the company would split in two, with its IM business and security business going separate ways.

“Since the Board first announced the separation of Veritas, we have been preparing the company to operate independently and evolving our business strategy, while continuing to deliver industry-leading solutions to our customers. We are thrilled to partner with The Carlyle Group and GIC, which have a strong track record of successfully growing businesses and share our dedication to Veritas’ strategy and success,” said John Gannon, Symantec executive vice president and Veritas general manager.

“Veritas will continue to provide next-generation information management solutions to serve the world’s largest and most complex environments, including multiple cloud deployments, managed services and on-premise infrastructure,” Gannon said.

Symantec expects to receive $6.3bn in cash for Veritas, and has authorized a $1.5bn increase to its existing share repurchase program, bringing the total to $2.6 billion, yielding a total of $8.9bn from the sale. Veritas was originally acquired by Symantec for $13.5bn in 2005.

Michael A. Brown, Symantec president and chief executive said: “This transaction strengthens our financial foundation, paving the way for Symantec to grow its security business and increase its lead as the world’s largest cybersecurity company. We believe the agreement with the investors, including The Carlyle Group and GIC, delivers an attractive and certain value for the Veritas business, and is in the best interests of all stakeholders.”

The divestment isn’t terribly surprising giving Symantec’s messaging at the tail end of last year. Upon announcing the company would split Brown said its security and IM businesses each face unique market opportunities and challenges.

“It has become clear that winning in both security and information management requires distinct strategies, focused investments and go-to market innovation,” he said at the time.

Now it seems Symentec is refocusing exclusively on security, and said the sale would give it a much needed cash influx to help it fund both organic and inorganic growth through targeted acquisitions.

Cisco, Frost Data Capital, Internet of Things, IoT, Jeff Scheel, John Vigouroux, News & Analysis, startups, Symantec

Symantec, Frost Data Capital to incubate startups solving IoT security challenges

Symantec and FDC are to incubate ten IoT security startups per year

Symantec and FDC are to incubate ten IoT security startups per year

Symantec is teaming up with venture capital firm Frost Data Capital to incubate startups primarily developing solutions to secure the Internet of Things.

The companies initially plan to create and seed up to ten early-stage startups with funding, resources and expertise, with Symantec offerings access to its own security technologies and Frost Data Capital its data analytics platforms.

“We’re taking a fresh look at driving innovation in the market and this partnership will enable Symantec to transform raw ideas and concepts into meaningful security companies,” said Jeff Scheel, senior vice president, strategy, alliances and corporate development at Symantec. “By collaborating with Frost Data Capital, we create an environment primed to incubate new, innovative and disruptive startups in cyber security – especially in the realm of IoT technologies where verticals like process control, automotive, health care and energy require specialized skills.”

The goal is to encourage development of threat detection analytics services capable of being applied in IoT architectures, where data volume and velocity can be particularly acute challenges when it comes to security and performance.

“We’re seeing a huge opportunity in the IoT security market,” said John Vigouroux, managing partner and president of Frost Data Capital. “We’re excited to work with Symantec to bring cutting-edge, relevant security analytics solutions to market rapidly, in order to prevent next generation cyber attacks on corporate infrastructures. Symantec brings to the table world-class security technology, global presence and strategic relationships that will be instrumental to launching these startups.”

Symantec and FDC are not the only firms looking to incubate startups with a view towards developing IoT solutions that complement their own offerings. Cisco recently announced significant efforts to incubate French and UK startups innovating in the area of IoT networks, while Intel and Deutsche Telekom unveiled similar moves in Europe last year.