Breaking News: Symantec Acquires VeriSign's security business

 By Gadjo Cardenas Sevilla

Symantec announced the acquisition of Verisign's security business, which includes key technologies that enable safe and secure transactions online. Symantec will own VeriSign's name and trademarks as well as the Secure Sockets Layer (SSL) Certificate Services, the Public Key Infrastructure (PKI) Services, the VeriSign Trust Services and the VeriSign Identity Protection (VIP) Authentication Service.

"The combination of VeriSign’s security products, services and recognition as the most trusted brand online and Symantec’s leading security solutions and widespread distribution will enable Symantec to deliver on its vision of a world where people have simple and secure access to their information from anywhere," explained Enrique Salem, Symantec's president and CEO.

"With this acquisition, we extend our strategy to create the most trusted brand for protecting information and identities online. The VeriSign check mark is the most recognized symbol of trust online with more than 175 million impressions every day on more than 90,000 websites in 160 countries. Symantec’s security solutions and the company’s Norton-branded suites protect more than one billion systems and users around the world. By bringing these security assets together, Symantec will become the leading source of trust online," he added.

Symantec Acquires VeriSign Security Business

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Transaction Details

The agreement provides that Symantec will acquire the assets of VeriSign's Authentication Services business, including its ownership stake in VeriSign Japan as well as certain brands and trademarks such as VeriSign's check mark.

Symantec has indicated that it expects to offer positions to most of VeriSign's authentication employees to support the business. VeriSign has agreed to support the business after the transaction's close by providing transitional services to Symantec. Following the close of the transaction, VeriSign expects to eliminate some positions that will not move to Symantec and that will not be required for its future operations.

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

Business Focus Post-Closing 
Following the close of this transaction, VeriSign's remaining business will consist of its Naming Services business, which contributed approximately $162 million or 61 percent of the company's revenues in the quarter ended March 31, 2010.

"We will continue to focus on the growth strategies we've previously articulated for our domain name and infrastructure availability businesses," said McLaughlin. "These include leveraging our existing infrastructure capabilities for new services, expanding internationally and pursuing new top-level domain opportunities."

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.

Transaction Details
The agreement provides that Symantec will acquire the assets of VeriSign's Authentication Services business, including its ownership stake in VeriSign Japan as well as certain brands and trademarks such as VeriSign's check mark.Symantec has indicated that it expects to offer positions to most of VeriSign's authentication employees to support the business.

VeriSign has agreed to support the business after the transaction's close by providing transitional services to Symantec. Following the close of the transaction, VeriSign expects to eliminate some positions that will not move to Symantec and that will not be required for its future operations.

The boards of both VeriSign and Symantec have unanimously approved this transaction, which is not subject to financing contingencies or shareholder approval. The transaction is expected to close in 60 to 90 days or upon receipt of regulatory approval.Business Focus Post-Closing 
Following the close of this transaction, VeriSign's remaining business will consist of its Naming Services business, which contributed approximately $162 million or 61 percent of the company's revenues in the quarter ended March 31, 2010."We will continue to focus on the growth strategies we've previously articulated for our domain name and infrastructure availability businesses," said McLaughlin.

"These include leveraging our existing infrastructure capabilities for new services, expanding internationally and pursuing new top-level domain opportunities."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.