Technology security firm Symantec Corp is set to buy privately held cybersecurity company Blue Coat for $4.65 billion. This cash deal intended to “ramp up Symantec’s enterprise security business,” will help Symantec compete with some of the largest security players including: Palo Alto Networks Inc, FireEye inc and Check Point Software Technologies Ltd. With a predicted total of $4.4 billion in combined revenue, this acquisition means that 62 percent of Symantec’s revenue will now come from enterprise security. Symantec, known for its Norton antivirus software, has reportedly been working on this deal over the past year. It sold its data storage unit, Veritas, for nearly $7.5 billion in January to acquire the cast necessary to “turn around its core security software business.”
Blue Coat is known for helping companies secure their web gateways from cyber-attacks. This purchase will ideally enhance Symantec’s offerings for large corporations such as email and endpoint security, according to a recent Reuter’s article. “Blue Coat brings capabilities from the web and for network-born threats, which combined with what we already offer will provide better protection for our customers,” said Ajei Gopal, Symantec’s interim president and chief operating officer. However, while Symantec is increasing their focus and resources on enterprise security, CFO Thomas Seifert explained that they have no plans to sell its consumer unit which is already a highly profitable aspect of the company. Blue Coat had already been preparing an initial public offering for later this summer. The company was acquired by fellow private-equity firm, Bain Capital, for $2.4 billion last year. “We enjoyed a very productive partnership, and are excited to be a significant investor in the future of Symantec as the leading cyber security Company in the world,” Bain managing director David Humphrey said in a statement. Once finalized, Humphrey will join Symantec’s board as the firm agreed to invest $750 million in convertible notes.