Global cybersecurity leader Symantec Corp. (NASDAQ:SYMC) has raised a a $500 million strategic investment from private equity firm Silver Lake, a global leader in technology investing.

Last week Symantec completed the $7.4 billion sale of its Veritas storage division to The Carlyle Group. Through a capital return plan, Symantec will return to its shareholders funds representing all of the after-tax cash proceeds from the recent sale of Veritas, as part of its turnaround plans.

In connection with Silver Lake’s investment, Symantec has increased the company’s total capital return program to $5.5 billion, which it expects to complete by the end of March 2017.

Michael A. Brown, Symantec president and CEO, said, “Silver Lake’s investment in Symantec validates the significant progress we’ve made in our transformation and is a tremendous vote of confidence in the Company. As we execute on Symantec’s unified security strategy as a focused company, we look forward to driving significant value for all shareholders.”

In conjunction with Silver Lake’s investment, Ken Hao, managing partner of Silver Lake, will be appointed to Symantec’s board of directors, effective at the close of the investment. With Hao’s appointment, Symantec’s Board will be comprised of ten directors, nine of whom are independent.

“As a premier cybersecurity provider, Symantec has the potential to solve some of the most significant challenges facing the rapidly growing market for security solutions,” said Hao. “We look forward to partnering with Symantec to achieve its long-term strategic vision.”

Brown added, “Ken brings extensive industry knowledge and operational expertise from managing and advising leading technology businesses. We are delighted that he will be joining Symantec’s Board and look forward to his contributions.”

Symantec also announced today that it is targeting cost savings of approximately $400 million to be achieved by the end of its fiscal year 2018.

Symantec will fund the $5.5 billion in capital return through a combination of the after-tax cash proceeds from the Veritas sale, the $500 million investment from Silver Lake, additional debt anticipated to be raised and available cash on hand.

Under the terms of the deal, Silver Lake is purchasing $500 million aggregate principal amount of 2.5% convertible senior unsecured notes due 2021 with an initial conversion price of $21.00 per share. Symantec expects to complete the sale of the notes on or about March 4, 2016, subject to customary closing conditions.

J.P. Morgan Securities LLC is serving as financial advisor to Symantec and Fenwick & West LLP is acting as legal counsel. Simpson Thacher & Bartlett LLP is serving as legal counsel to Silver Lake.

Symantec Corp. is the global leader in cybersecurity. Operating one of the world’s largest cyber intelligence networks, we see more threats, and protect more customers from the next generation of attacks. We help companies, governments and individuals secure their most important data wherever it lives. Symantec was founded in 1982 and is headquartered in Mountain View, California.

Silver Lake is a global leader in technology investing, with over $26 billion in combined assets under management and committed capital. The firm’s portfolio of investments collectively generates more than $85 billion of revenue annually and employs more than 170,000 people globally. Silver Lake has a team of approximately 100 investment and value creation professionals located in New York, Menlo Park, San Mateo, London, Hong Kong and Tokyo. The firm’s current portfolio includes leading technology and technology-enabled businesses such as Alibaba Group, Avaya, Broadcom Limited, Cast & Crew, Ctrip, Dell, Global Blue, GoDaddy, Intelsat, Motorola Solutions, Quorum Business Solutions, Red Ventures, Sabre, SMART Modular, Vantage Data Centers, and WME/IMG.



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