Carlyle is joined in purchasing Veritas by GIC, Singapore’s sovereign wealth fund.
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The American software security company headquartered in Mountain View, California, might announce the deal even today, when it presents its quarterly earnings, a person familiar with the matter said. The company earned $1.50 billion during the quarter, compared to the consensus estimate of $1.53 billion.
Symantec said Tuesday its business sale provides “significant proceeds” to continue investing in the fast-growing market for security products and services.
The company also raised its buyback program by $1.5 billion to $2.6 billion. The shares have seen a weekly value change of -0.86%.A block trade was recorded in the shares with a net money flow of $(-0.93) million.
“However, TBR believes Symantec’s pointed actions will lead to only a niche set of new revenue opportunities, rather than driving the comprehensive security revenue growth that Symantec needs to begin to reverse its revenue decline in the coming year”, she cautioned in a commentary on the firm. “Bill Coleman is a proven leader whose strategic vision and strong execution skills will leverage Veritas’ new-found position as a private, stand-alone company to grow the firm and provide customers an integrated information management solution”, Carlyle Managing Directors Patrick McCarter and Cam Dyer said.
Symantec’s shares, however, fell as much as 5 percent on Tuesday as investors focused on the company’s weak earnings and forecast.
Symantec reported a net income of $117 million, or 17 cents per share (statement).
Symantec first revealed its intention to spin off its information management business in October last year, about 10 years after it acquired Veritas Software in a deal valued at approximately $13.5 billion. Analysts expected earnings of $0.45 per share on revenue of $1.54 billion.
Symantec Corporation (NASDAQ:SYMC): On Friday heightened volatility was witnessed in Symantec Corporation (NASDAQ:SYMC) which led to swings in the share price.
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The stock price of Symantec has dropped 1.39% over the last 200 days, and is in very unstanble down trend.
