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Symantec, Veritas In $13.5B Merger Pact

Symantec said Thursday that it has reached a $13.5 billion stock swap merger deal with storage software maker Veritas Software.

The accord will reshape the software landscape, creating a channel-friendly security infrastructure powerhouse that will compete with a wide range of rivals from software giant Microsoft to storage kingpin EMC.

Under the definitive agreement, which was unanimously approved by both boards of directors, Veritas shareholders will receive 1.1242 shares of Symantec stock for each share of Veritas stock.

The combined company will operate under the Symantec name with Symantec Chairman and CEO John Thompson remaining as chairman and CEO of the combined company. Veritas CEO and President Gary Bloom will be vice chairman and president of the combined company. The board of directors of the combined company will include six members of Symantec's current board and four from Veritas' current board.

Post-merger, the combined Symantec-Veritas will have significant channel strength in small and midsize businesses and enterprise accounts. The company would have revenue of $5 billion, with approximately 75 percent coming from enterprise business and 25 percent from consumer business. The company will have approximately $5 billion in cash, which could be used for future acquisitions.

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