LifeLock(LOCK.N), a US identity theft protection service, is to be acquired by Symantec(SUMC.O) for an enterprise value of $2.3 billion. This acquisition will form the world’s largest digital protection platform for consumers with hopes of an increase in sales at its Norton cybersecurity division.
Symantec’s purchase of LifeLock merges the #1 leader in consumer security with a leading provider of ID theft protection and recovery services. By offering each of the company’s consumer bases a broader protection, Symantec expects to experience added revenue through higher retention rates and ASPs.
Symantec CEO, Greg Clark stated in an interview, “(Norton) had been declining with the declines in PC market share. This acquisition brings $660 million in revenue to the consumer business and returns it to longer sustainable growth.”
This acquisition is in line with Symantec’s efforts to broaden its options. Earlier this year, in August, it bought Blue Coat Inc, which helps companies maintain security over the internet.
With the expected closing in the first quarter of 2017, Symantec said the deal is not expected to have a material impact on its financials for fiscal 2017.
Shares of LifeLock trades rallied 10% Monday, with Symantec up 4.5%.
The transaction is expected to be financed with cash as well as $750 million new debt.