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Symantec & Veritas: It's a Deal

The boards of Veritas Software Corp. (Nasdaq: VRTS) and Symantec Corp. (Nasdaq: SYMC) have unanimously agreed to merge in an all-stock deal valued at about $13.5 billion, based on Symantec's share price of $27.38 at market close yesterday.

Terms of the agreement call for Veritas stock to be converted into Symantec stock so that Symantec shareholders will own about 60 percent of the new firm and Veritas shareholders about 40 percent.

The company will retain the Symantec name. The deal is expected to close in the second quarter of next year.

In a conference call this morning, Gary Bloom, CEO of Veritas, and John W. Thompson, CEO of Symantec, said the combined firm will be the fourth-largest software company in the world and the fastest-growing one in the revenue bracket above $3 billion.

"This is a powerful, powerful combination with incredible synergies and leverage," Thompson told analysts. "I can't think of anything more important to CIOs than security and availability of their data."

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