The maker of the Norton anti-virus software is buying a cybersecurity company for $4.7 billion deal. The deal could transform the security landscape as Fred Katayama reports.
The maker of the popular Norton anti-virus software is buying a cybersecurity company in a deal that could transform the security landscape. Symantec will pay $4.7 billion in cash to acquire privately held Blue Coat. Symantec gets two things in the deal: Blue Coat's cyber defense and cloud security technologies ... and a new CEO with Blue Coat's Greg Clark filling its empty corner office, solving Symantec's leadership issue. Symantec earlier sold its Veritas data storage business so it can focus on its core security software business. With Blue Coat, enterprise security will now make up well more than half of its revenue. Symantec's shares shot higher in early trading. With the combination of the two largest stand-alone players in cybersecurity, William Blair analyst Jonathan Ho says, "... there could be more consolidation in the industry to follow as companies try to build equivalent solution platforms." Ripe targets, he says, include CyberArk Software, Imperva, Proofpoint, and Rapid 7.