Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Symantec Corporation    SYMC


News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Buyout Firms Size Up Symantec -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
09/07/2019 | 03:34am EDT

Private-equity investors Permira and Advent approach tech firm

By Cara Lombardo and Dana Cimilluca 

Symantec Corp. has received interest from a pair of private-equity suitors seeking to buy the cybersecurity firm for more than $16 billion after it agreed to a sale of a big chunk of its business, according to people familiar with the matter.

Permira and Advent International Corp. recently approached Symantec proposing a takeover deal valuing Symantec at $26 to $27 a share that would hand them the company's consumer operation while preserving the sale of its enterprise business to Broadcom Inc. Such a structure could reduce the tax bill for its shareholders, the people said.

It couldn't be learned how exactly this deal would work and it is far from guaranteed it will happen. If it does, it could involve the firms buying Symantec and proceeding with the sale to Broadcom or waiting for the enterprise deal to close and then acquiring the consumer unit, which includes Norton antivirus and LifeLock identity-theft-protection products.

Selling a company when a major transaction like the Broadcom deal is about to close would be complicated and unusual.

Symantec last month said it would sell its enterprise-security business to Broadcom, a major chip and software producer, for $10.7 billion. Symantec plans to distribute proceeds in a special dividend of $12 a share after the deal closes, expected by the end of the year.

It also said it would boost a stock-repurchase program.

The stock had risen roughly 16% to $23.70 since The Wall Street Journal reported on the deal with Broadcom, giving Symantec a market value of roughly $14.5 billion. Symantec shares rose about 4.5% on Friday.

A deal at $26 or $27 a share would value Symantec at about $16.4 billion.

The private-equity firms believe the extra premium is justified by what they see as the tax inefficiency of the deal with Broadcom, which is expected to trigger steep dividend-tax payments for shareholders related to the special payout, the people familiar with the matter said.

Broadcom had earlier this year considered a deal for all of Symantec and was close to inking one before the talks fell apart. Permira and Advent also previously considered such a deal.

The enterprise unit serves businesses and has helped make Symantec the world's largest seller of security software for corporate networks, though the consumer operation is more profitable.

Last week, Symantec said interim Chief Executive Richard Hill would resign following the sale to Broadcom and initiated a search for his replacement. Symantec a year ago drew the attention of activist investor Starboard Value LP, which struck a settlement for board seats.

Write to Cara Lombardo at cara.lombardo@wsj.com and Dana Cimilluca at dana.cimilluca@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
BROADCOM INC -1.30% 284.26 Delayed Quote.14.30%
MARVELL TECHNOLOGY GROUP LTD. -3.01% 24.84 Delayed Quote.58.18%
SYMANTEC CORPORATION -0.42% 23.88 Delayed Quote.26.91%
share with twitter share with LinkedIn share with facebook
share via e-mail
10:23aONCE HACKED, TWICE SHY : How auto supplier Harman learned to fight cyber carjack..
09/10SYMANTEC : Awarded Best Enterprise Endpoint and Best Email Security Service by S..
09/09Stocks to Watch: Symantec, Tapestry, Church & Dwight
09/07Buyout Firms Size Up Symantec -- WSJ
09/06Tech Flat as Traders Hedge Growth Bets -- Tech Roundup
09/06SYMANTEC : receives interest from buyout firms Permira, Advent - WSJ
09/06SYMANTEC : Shares Gain 5% Following WSJ Report of Buyout Firm Interest
09/06Buyout Firms Permira, Advent Seek to Acquire Symantec, Sources Say
09/03Recent U.S. corporate responses to gun violence
08/30SYMANTEC CORP : Change in Directors or Principal Officers (form 8-K)
More news
Financials (USD)
Sales 2020 4 846 M
EBIT 2020 1 548 M
Net income 2020 322 M
Debt 2020 2 418 M
Yield 2020 1,34%
P/E ratio 2020 47,4x
P/E ratio 2021 36,9x
EV / Sales2020 3,54x
EV / Sales2021 3,43x
Capitalization 14 759 M
Duration : Period :
Symantec Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SYMANTEC CORPORATION
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 23
Average target price 22,94  $
Last Close Price 23,88  $
Spread / Highest target 13,1%
Spread / Average Target -3,92%
Spread / Lowest Target -28,8%
EPS Revisions
Gregory S. Clark President, Chief Executive Officer & Director
Daniel H. Schulman Non-Executive Chairman
Nicholas R. Noviello Chief Financial Officer & Executive Vice President
Sheila B. Jordan Chief Information Officer & Senior Vice President
Hugh Thompson Chief Technology Officer
Sector and Competitors
1st jan.Capitalization (M$)
ADOBE INC.24.32%136 535
WORKDAY INC.8.18%39 385
AUTODESK19.26%33 680
SQUARE INC5.24%25 214