Symantec acquires Lifelock for $2.3bn

Symantec is to acquire LifeLock in a transaction with a value of $2.3bn. Symantec (the maker of Norton antivirus software) and LifeLock, a provider of identity theft protection services, expect the deal to be financed by Symantec via cash and $750m of new debt.

The merger, one of over forty Symantec has carried out, merges one consumer security company with another in identity protection and remediation services. Together they make the world’s largest consumer security business with approx $2.3bn in annual revenue.

Symantec has increased the company’s share repurchase authorisation from $800m to $1.3bn, with up to $500m in repurchases targeted by the end of fiscal 2017.

“As we all know, consumer cyber crime has reached crisis levels,” said Greg Clark, CEO of Symantec. “LifeLock is a leading provider of identity and fraud protection services, with over 4.4 million highly-satisfied members and growing. This acquisition marks the transformation of the consumer security industry from malware protection to the broader category of digital safety for consumers.”

“After a thorough review of a broad range of alternatives, our board of directors unanimously concluded that Symantec is the ideal strategic partner for LifeLock and offers our shareholders a significant premium for their investment, at closing,” said Hilary Schneider, CEO of LifeLock.

“Together with Symantec we can deploy enhanced technology and analytics to provide our customers with unparalleled information and identity protection services. We are very pleased to have reached an outcome that serves the best interests of all LifeLock stakeholders.”

The merger has been approved by the boards of directors of both companies and is expected to close in the first quarter of 2017.