Visitors Now:
Total Visits:
Total Stories:
Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Symantec Is Buying LifeLock For $2.3 Billion In Cash

Monday, November 21, 2016 6:41
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Tech security giant Symantec Corporation (NASDAQ:SYMC) will acquire identity protection specialist LifeLock Inc (NYSE:LOCK) for $2.3 billion in an all-cash deal.

The $24 per-share agreement, which was approved by both companies’ boards of directors, represents a 15.6% premium over LOCK’s Friday closing price of $20.75. The deal is still subject to approval by LifeLock shareholders, but is expected to close in the first quarter of 2017.

Symantec commented via press release:

By offering each of the company’s respective customer bases a broader digital safety solution, Symantec expects to achieve additional revenue upside through higher ASPs and improved retention rates.

Symantec expects to finance the transaction with cash on the balance sheet and $750 million of new debt. Symantec’s board of directors has also increased the company’s share repurchase authorization from approximately $800 million to $1.3 billion, with up to $500 million in repurchases targeted by the end of fiscal 2017.

SYMC also reaffirmed its first quarter and full-year earnings estimates this morning, noting the transaction won’t be accretive until fiscal 2018.

Symantec shares were unchanged in premarket trading Monday at $23.75. Year-to-date, SYMC has gained 13.1%, nearly doubling the performance of the benchmark S&P 500 index during the same period.

Meanwhile, LifeLock shares, which had surged 44.6% year-to-date prior to today’s deal announcement, surged another 14% in premarket trading Monday morning.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.