Symantec is concentrating on becoming one of the world’s largest consumer security businesses, after revealing it is acquiring ID protection player LifeLock for $2.3bn.
According to Symantec, the acquisition of LifeLock forms the world’s largest digital safety platform for consumers and families with revenues of $2.3bn annually for both companies.
The deal has been approved by the boards of directors for both companies.
‘Consumer cybercrime has reached crisis levels’
– GREG CLARK
Following regulatory and shareholder approval, the acquisition is expected to close in the first quarter of 2017.
It will be financed by cash on Symantec’s balance sheet and $750m of new debt.
Consumer cybercrime epidemic is out of control
“As we all know, consumer cybercrime has reached crisis levels,” said Greg Clark, Symantec’s CEO.
“LifeLock is a leading provider of identity and fraud protection services, with over 4.4m highly satisfied members, and growing.
“With the combination of Norton and LifeLock, we will be able to deliver comprehensive cyber defence for consumers. This acquisition marks the transformation of the consumer security industry from malware protection to the broader category of digital safety for consumers.”
In the last year alone, one-third of American citizens and over 650m people globally were victims of cybercrime.
As more and more consumers are concerned about digital safety, Symantec said this represents an addressable market of 80m people and $10bn in potential revenues.
“People’s identity and data are prime targets of cybercrime. The security industry must step up and defend through innovation and vigilance,” said Dan Schulman, Symantec’s chairman of the board.
“With the acquisition of LifeLock, Symantec adds a new dimension to its protection capabilities to address the expanding needs of the consumer marketplace.”