Symantec is to acquire LifeLock for USD 2.3 billion, or USD 24 per share. The deal expected to create the world’s largest digital safety platform for consumers and families, with a combined annual revenues estimated at USD 2.3 billion, Symantec said. The transaction, approved by the boards of directors of both companies is expected to close in the first quarter of next year, subject to customary closing conditions including LifeLock stockholder approval.
Symantec CEO Greg Clark noted the purchase will bring together Norton and LifeLock and mark the ransformation of the consumer security industry from malware protection to the broader category of Digital Safety for consumers.
Given the expected closing time, Symantec expects the transaction to be accretive to earnings from fiscal year 2019. Symantec expect to achieve additional revenue upside through higher ASPs and improved retention rates, as customers get access to a broader digital safety system. The company expects to finance the transaction with cash on the balance sheet and USD 750 million of new debt. Symantec’s board of directors has also increased the company’s share buybacke authorisation to USD 1.3 billion from 800 million, with up to USD 500 million in repurchases targeted by the end of fiscal 2017.
The company is reiterating its full year 2017 financial guidance for adjusted revenues of USD 4.040-4.120 million, an adjusted operating margin of 27-29 percent; and adjusted earnings per share of USD 1.12-1.18. For full year 2018, the company is still forecasting adjusted earnings per share of USD 1.70-1.80. Symantec expects the transaction to be accretive to non-GAAP earnings per share in fiscal year 2019.
