Symantec Corporation (NASDAQ:SYMC) is planning to acquire Lifelock Inc (NYSE:LOCK) for $2.3 billion.
The deal between Symantec Corporation and Lifelock Inc will have the former paying $24 per share for LOCK stock. This is a roughly 15% premium over the stock’s closing price on Nov. 19. The company will use cash on hand and new debt of $750 million to complete the acquisition.
Symantec Corporation is expecting the deal to create a company with $2.3 billion in annual revenue. This is based on reported revenue from both companies last year. It will take the company beyond just stopping malware and let it focus on protecting all aspects of customer data.
“People’s identity and data are prime targets of cyber crime. The security industry must step up and defend through innovation and vigilance,” Dan Schulman, Symantec’s Chairman of the Board, said in a statement. “With the acquisition of LifeLock, Symantec adds a new dimension to its protection capabilities to address the expanding needs of the consumer marketplace.”
Symantec Corporation points out that the cyber security industry market has an estimated value of $10 billion. It also says that this industry is experiencing growth in the high single digits. The company expects at least 80 million people in just the United States to be a part of its addressable market.
Symantec Corporation and Lifelock Inc are expecting the deal to close during the first quarter of 2017. As such, SYMC said it won’t affect its earnings report for the fourth quarter of 2016. The deal is subject approval from regulators, as well as a vote from LOCK shareholders.
SYMC stock was up 3% and LOCK stock was up 15% as of Monday morning.
