Symantec, a computer security company, has decided to buy identity-theft protection company called LifeLock for around $2.3 billion or $24 per stock.
With the goal of improving its consumers’ computer security sector, Symantec has agreed to acquire LifeLock, seller of identity protection services. The board of directors for both companies has approved the deal, which was bound to close in the early part of 2017.
The World’s Biggest Consumer Security Provider
The said deal would form what was described by the two companies as the world’s biggest consumer security business deal with more than $2.3 billion worth of annual revenue according to the 2015 economic year for both Symantec and LifeLock.
Due to the increasing number of customers in a global scale that have fallen victims of cyber-bullying or cybercrimes causing for greater concerns in digital safety, Symantec saw this as a window of opportunity to grab on. Both companies estimated the industry to be worth $10 billion and increasing steadily as time goes by. In the United States alone, the total number of potential customers was estimated to be at least 80 million.
The acquisition was approved by majority of the board of directors from both companies and will be expected to finally close within the first quarter of the following year.
Symantec is also widely expected to sign the deal and finish the transaction by paying $750 million in arrears plus the remaining amount in cash on the balance sheet.
As the cyber security industry moves into a broader digital safety category for consumers from the simple malware protection, Symantec hopes to deliver across-the-board cyber-world defense for many of its subscribers.
“With the acquisition of LifeLock, Symantec adds a new dimension to its protection capabilities to address the expanding needs of the consumer marketplace,” Symantec CEO Greg Clark said in a statement after announcing its recent acquisition of LifeLock and how it would boost currently owned Norton security services.
At present, LifeLock has more than 4.4 million subscribers under its stand-alone name for protection services against fraud and identity theft in the worldwide web.
The company’s board of directors was more than happy to announce that the collaboration between LifeLock and Norton would create a single simple solution for complete protection, a critical component in a steadily expanding digital world.
The deal would still need to meet customary concluding conditions and discussions, including the rigid approval of LifeLock stockholders and the United States government.
Meanwhile, as the second fiscal quarter ended last Sept. 30, Symantec accounted revenue of $979 million, which is an 8 percent boost from the second fiscal quarter of 2015. Company officials were positive that the deal with LifeLock would not have a negative impact to its fiscal quarter come Dec. 30.
Additionally, Symantec recently obtained stocks from web security company Blue Coat to hold up its enterprise security business.
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