Cybersecurity firm Symantec is all set to acquire LifeLock, an identity protection provider, for $2.3 billion, in a deal through which it hopes to deliver comprehensive cyber defense for consumers.
In the last year, one third of American citizens and over 650 million people globally were the victims of cybercrime. Consequently, more and more consumers are concerned about digital safety, an estimated $10 billion market growing in the high single digits. In the United States alone, the estimated total addressable market is 80 million people.
“This acquisition marks the transformation of the consumer security industry from malware protection to the broader category of Digital Safety for consumers,” said Greg Clark, Symantec’s CEO.
Founded in 2005, LifeLock became a public company on October 3, 2012. Based in Tempe, Ariz., it has offices in San Diego, San Francisco, and Mountain View, Calif.
“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.”
“Together with Symantec we can deploy enhanced technology and analytics to provide our customers with unparalleled information and identity protection services. We are very pleased to have reached an outcome that serves the best interests of all LifeLock stakeholders,” said Hilary Schneider, CEO of LifeLock.
Symantec expects to finance the transaction with cash on the balance sheet and $750 million of new debt. Symantec’s board of directors has also increased the company’s share repurchase authorization from approximately $800 million to $1.3 billion, with up to $500 million in repurchases targeted by the end of fiscal 2017.
Citi and J.P. Morgan Securities are serving as co-lead financial advisors to Symantec along with Barclays, Bank of America, Citi, J.P. Morgan, Merrill Lynch and Wells Fargo.
Fenwick & West LLP is acting as legal advisor to Symantec in connection with the acquisition, and Fenwick & West LLP and Simpson Thacher & Bartlett LLP are acting as legal advisors to Symantec in connection with the debt financing. Goldman, Sachs & Co. is acting as financial advisor to LifeLock. Wilson Sonsini Goodrich & Rosati and Skadden, Arps, Slate, Meagher & Flom LLP are acting as legal advisors to LifeLock.