Carlyle staff Acquires Veritas For $eight Billion From Symantec

August eleven, 2015

Carlyle group LP has agreed to procure Veritas from Symantec Corp. for $ eight billion. The leveraged buyout is the most important in the us for 2015. the most important deal of the year previous to the acquisition was the $ 5.three billion LBO of tool company Informatica Corp.

The Carlyle workforce will use equity from its buyout fund and GIC to pay for a big chunk of the deal. The transaction is expected to be completed before the top of the yr.

invoice Coleman, the founder of tool company BEA techniques Inc., will transform Veritas’s chief govt officer. invoice Krause, a Carlyle running govt who prior to now was president and CEO of 3Com, will be chairman.

Symantec will use the cash to fund new initiatives in order to assist develop its security services and products, such as incident response programs. the corporate has come beneath fireplace nowadays after hackers found how you can thwart its antivirus instrument.

For the quarter led to June, Symantec stated sales fell 14 percent to $ 1.5 billion, lacking the $ 1.53 billion moderate estimate of analysts surveyed by means of Bloomberg. the company issued an adjusted profit of 40 cents a share compared with the forty three-cent reasonable expectation.

Following news of the LBO, Symantec shares fell 2.four percent to $ 22.35. the company is down thirteen percent on the yr.

Veritas was once bought in 2005 for $ thirteen billion.

Carlyle manages $ 193 billion in non-public equity, real property, credit and hedge fund assets. the corporate is an knowledgeable in LBO’s, making the Veritas purchase a just right fit for the group, particularly as cloud services continue to grow in recognition and importance for a lot of corporations large and small.

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