Symantec (SYMC) has announced that it’s selling Veritas to a group of investors led by Carlyle Group (CG) for $8 billion.
Symantec is expected to finalize the sale of Veritas to Carlyle Group by the start of next year. The other investor paying to acquire Veritas with Carlyle is Singapore’s sovereign wealth fund GIC. It will see net cash of $6.3 billion from the deal. SYMC will use this money to invest in its security business and help fund a share repurchase program, reports Forbes.
Prior to its deal with Carlyle Group, Symantec was looking to spin Veritas off into its own publicly traded company. This new company would have been named Veritas Technologies Corp. It bought the company back in 2005 for an estimated $13.5 billion, The Wall Street Journal notes.
Symantec saw its stock increase following news that it was selling Veritas. However, the increase didn’t last long as its stock started to drop following disappointing results for its fiscal first quarter of 2016, reports Forbes.
SYMC shares were down 5% and CG sahres were down 3% as of Tuesday afternoon.
