Symantec Will Lose Out On $1bn Cash With Veritas Sale

Security provider Symantec is getting $1bn less cash than it had originally hoped for in the sale of its Veritas storage business, the company said on Tuesday.

The buyer, private equity firm Carlyle Group, will now pay $7.4bn for Veritas, including $6.6 bn in cash, instead of the previously stated $8 billion that the two companies had agreed on last August. Symantec and Carlyle also agreed to increase the amount of offshore cash remaining in Veritas from $200m to $400m, which will result in a net consideration to Symantec of $7bn.

Uncertainties

The amended terms come after “uncertainties” developed regarding the transaction. But both parties have now agreed that all key conditions have been satisfied, and the deal will close January 29.

Michael A. Brown, Symantec’s CEO, said: “In a difficult environment, we can move forward with a high degree of certainty around closing a transaction that represents attractive value for shareholders.”

Symantec acquired Veritas in 2005 for $13.5bn, and will now use proceeds of the sale to boost its credentials in the burgeoning cyber security market.

Brown said: “In addition, this transaction will allow Symantec to further focus and accelerate its strategy as the world’s leading cybersecurity company.”

Symantec also updated investors on its expected third quarter of 2016 results on Tuesday, predicting revenue and earnings above the midpoint given in November 2015 of $890m to $920m.

Read more about the Veritas split from Symantec here

Ben Sullivan

Ben covers web and technology giants such as Google, Amazon, and Microsoft and their impact on the cloud computing industry, whilst also writing about data centre players and their increasing importance in Europe. He also covers future technologies such as drones, aerospace, science, and the effect of technology on the environment.

Recent Posts

Ericsson To Cut 1,200 Jobs in Sweden Amid ‘Challenging’ Market

Swedish telecoms giant Ericsson blamed “challenging mobile networks market” and “further volume contraction” for job…

12 hours ago

FTX’s Sam Bankman-Fried Sentenced To 25 Years In Prison For $8bn Fraud

Dramatic downfall. Sam Bankman-Fried sentenced to 25 years in prison for masterminding $8bn fraud that…

13 hours ago

Elon Musk Orders FSD Demo For Every Tesla US Sale

Fallout avoidance? Tesla buyers in the US must be shown how to use the FSD…

14 hours ago

Amazon Pumps Another $2.75 Billion Into Anthropic

Amazon completes its $4bn investment into AI firm Anthropic, after providing an additional $2.75bn in…

16 hours ago

The Sustainability of AI

While AI promises unparalleled efficiency, productivity, and innovation, questions regarding its environmental impact loom large.…

19 hours ago

Trump’s Truth Social Makes Successful Market Debut

Shares in Donald Trump’s social media company rose about 16 percent after first day of…

19 hours ago