The transaction includes the acquisition of the Symantec name and is expected to conclude before the end of calendar year 2019, subject to regulatory approvals and other customary closing conditions, Symantec said Thursday.
Symante’c enterprise security assets will become part of Broadcom’s infrastructure software portfolio.
“This is a transformative transaction that should maximize immediate value to our shareholders while maintaining ownership in a pure play consumer cyber safety business with predictability, growth and strong consistent profitability. In addition it allows the Enterprise Security business to grow and compete on an enterprise platform with a worldwide sales and distribution reach which can service our existing customers,” said Rick Hill, interim president and CEO of Symantec.
Hill added that the sale will allow Symantec’s Norton LifeLock cyber safety business to “operate independently and give investors a clear understanding of the growth opportunity and strong financial performance.”
Symantec expects to pay shareholders a special dividend of $12 per share in the fourth quarter of fiscal year 2020 and raise its regular quarterly dividend by 67 percent to $0.125 per share after the close of the transaction.
Symantec’s board of directors approved the deal and will increase the existing share repurchase authorization to up to $1.6B. The company will continue to run its consumer cyber safety business focused on providing identity protection, device security and privacy software to small businesses and other clients.
Goldman Sachs & Co. and Fenwick & West LLP respectively served as financial and legal advisers to Symantec in the transaction.