Symantec to Acquire VeriSign's Security Arm

Chandrasekhar Atreya
20 May, 2010
New York City

Mountain View, California-based Symantec Corp is to acquire the security business of VeriSign in a definitive agreement for $1.28 billion. The transaction is expected to get regulatory approvals in 60 to 90 days.

[R]Mountain View, California-based Symantec Corp is to acquire the security business of VeriSign in a definitive agreement for $1.28 billion. The transaction is expected to get regulatory approvals in 60 to 90 days.[/R]

Symantec Corp. said it has signed a definitive agreement to acquire VeriSign''s identity and authentication business for $1.28 billion in cash. The business includes the Secure Sockets Layer Certificate Services, the Public Key Infrastructure Services, the VeriSign Trust Services and the VeriSign Identity Protection Authentication Service.

The boards of both VeriSign and Symantec have unanimously approved the transaction, which is not subject to financing contingencies or shareholder approval. The transaction is expected to close in 60 to 90 days upon receipt of regulatory approvals.

Under the terms of the agreement, Symantec will purchase specific assets from VeriSign, including the majority stake in VeriSign Japan, as well as certain brands and trademarks such as VeriSign''s check mark.

Symantec expects the combination of its security solutions and widespread distribution network and VeriSign''s security products and services would enable it provide customers simple and secure access to their information from anywhere.

With more than one million web servers using VeriSign SSL certificates, and an infrastructure that processes more than two billion certificate checks daily, VeriSign has the leading share of the SSL market.

The business being acquired now represents more than $400 million in annual revenue and about 900 employees. Symantec has is expected to offer positions to most of VeriSign’s employees to support the business. In turn VeriSign has agreed to support the business after the transactions close by providing transitional services to Symantec.

J.P. Morgan Securities Inc. acted as VeriSign''s financial advisor and Cleary Gottlieb Steen & Hamilton LLP acted as VeriSign''s legal advisor on the transaction.