Symantec to Separate into Two Technology Companies
Symantec will split into two publicly traded companies, one focused on security and the other storage and backup, potentially making itself more attractive to suitors. Symantec's Board of Directors has unanimously approved a plan to separate the company into two, independent publicly traded companies: one business focused on security and one business focused on information management (IM). Symantec’s decision to pursue a separation follows a business review of the company’s strategy and operational structure.
"As the security and storage industries continue to change at an accelerating pace, Symantec’s security and IM businesses each face unique market opportunities and challenges. It has become clear that winning in both security and information management requires distinct strategies, focused investments and go-to market innovation," said Michael A. Brown, Symantec president and chief executive officer. "Separating Symantec into two, independent publicly traded companies will provide each business the flexibility and focus to drive growth and enhance shareholder value."
The Security business will include: consumer and enterprise endpoint security; endpoint management; encryption; mobile; Secure Socket Layer (SSL) Certificates; user authentication; mail, web and data center security; data loss prevention; hosted security; and managed security services.
Symantec’s IM businesses will include: backup and recovery; archiving; eDiscovery; storage management; and information availability solutions.
Michael A. Brown will be the President and CEO of Symantec and Thomas Seifert will continue to serve as CFO. John Gannon will be General Manager of the new information management business and Don Rath will be its acting CFO.
The transaction is intended to take the form of a tax-free distribution to Symantec shareholders of 100% of the IM business in a new, independent, publicly traded stock. The company expects to complete the spinoff by the end of December 2015.