As a part of the deal, Blue Coat CEO Greg Clark will take over the same position at Symantec. the company has been working for the reason that April with out one when Michael A. Brown stepped down.
It was once a shocking flip of situations for Blue Coat, which used to be offered just final yr to Bain Capital for $ 2.four billion. by using all reports, Bain supposed to take Blue Coat public this 12 months except they obtained and overwhelming supply from Symantec.
Bain makes a tidy revenue off of the deal only a 12 months after shopping for Blue Coat and intends to take $ 750 million of the proceeds and plow it back into the combined industry.
With Blue Coat, the 2 companies are combining to create an endeavor security large. in point of fact what you could have is two large corporations with quite a lot of customers and earnings, but which can be beneath force from an an increasing number of competitive safety market, hoping that the combined entity can do better than they could on my own.
“together, we will be able to be easiest placed to deal with the ever-evolving danger landscape, the massive adjustments offered by means of the shift to cell and cloud, and the challenges created with the aid of regulatory and privateness issues,” Dan Schulman, Chairman of Symantec said in a statement.
One factor the blended group has going for it is that Symantec has tended to pay attention to on-premises safety, whereas Blue Coat has emphasised net and cloud security, so there is little overlap in merchandise.
the larger is better technique is similar to the one Dell is taking with its $ sixty seven billion deal with EMC, albeit a a lot larger bet. interestingly, Silver Lake, which is a giant Dell investor can be involved right here, doubling its $ 500 million funding in Symantec to $ 1 billion as a part of the deal.
the two corporations have lots of consumers and revenue, but that hasn’t essentially translated into the monetary success it’s possible you’ll expect.
Symantec mentioned revenue was once down 2 p.c yr over yr in every of its two studies this yr (Q3 2016 and q4 2016) . What’s extra, the corporate inventory has considered an roughly 27 p.c drop over the past 12 months, falling from $ 24.46 on June 18, 2015 to $ 17.39 as of Friday (with a low of $ sixteen.sixty two in March).
As for Blue Coat, Fortune studies that it had $ 232 million web loss on $ 598 million in earnings, however attributed a lot of the loss to up to date acquisitions of Perspecsys and Elastica.
whether the blended corporations will in truth function better than they did one after the other is an open question. In a time when agility and pace are valued attributes in companies, developing a bigger, much less flexible company appears counter to that. One thing the two firms have going for them is lack of overlap, which is ordinary in a deal like this, but you have to marvel if scaling up is find out how to go right here and whether a big group can move speedy sufficient in a rapidly altering market house.
undertaking – TechCrunch