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

New US Export Controls Target China Semiconductor Firms

US introduces export controls on design software and substrate materials to block Chinese companies from…

21 hours ago

US Judge Approves Apple Settlement In Retail Class Action Lawsuit

US federal judge approves settlement offered by Apple in nearly decade-old case over compensation for…

21 hours ago

Ola Plans Premium Electric Car For Indian Market

SoftBank-backed ride-hailing firm Ola Electric announces range of electric cars starting in 2024 following success…

22 hours ago

Faraday Future Raises Fresh Backing For Electric SUV Debut

Electric car start-up Faraday Future looks to raise up to $600m in new funds as…

22 hours ago

India’s Mahindra Launches Electric SUVs Based On VW Platform

India's Mahindra & Mahindra launches range of five electric SUVs based on VW's open MEB…

23 hours ago

Snapchat Hits 1 Million Paid Users Amidst Weak Ad Market

Snapchat parent Snap says paid subscription service reaches 1 million subscribers as weak ad market…

23 hours ago