Symantec will purchase Blue Coat for $4.65B
Symantec is massive move in the industry by coming to the conclusion to purchase the privately held security vendor Blue Coat for $4.65 billion all in cash.
13 Jun 2016 – Eweek
The deal, announced June 13, is expected to close in the third quarter, at which time Greg Clark, current CEO of Blue Coat, will become the CEO of Symantec.
The deal comes a year after major milestones for both Symantec and Blue Coat, as both companies have undergone transitions. The $4.65 billion acquisition figure represents a significant return on investment for Bain Capital, which acquired Blue Coat for $2.4 billion in March 2015 from Thoma Bravo, which had bought Blue Coat in 2011 for $1.3 billion.
For its part, Symantec divested its Veritas storage division in 2015, as part of a plan to focus exclusively on security, which is where the Blue Coat deal fits in.
In a conference call with analysts, Symantec executives detailed why the deal makes sense for both companies. Ajei Gopal, interim president and chief operating officer at Symantec, said the Blue Coat product portfolio complements Symantec’s lineup and will create a more comprehensive offering for customers.
“Our solutions dovetail perfectly with only a small overlap in our product portfolios,” Gopal said. “Furthermore, there is huge leverage in our ability to share our core protection engines, and the vast amount of threat data we collect.”
Symantec collects and analyzes security data from more than175 million endpoints that are protected by way of Symantec endpoint protection, Gopal said. Blue Coat, in contrast, analyzes data from more than 1.2 billion Web requests that are secured each day by way of its secure Web gateway.
Additionally, Blue Coat protects and monitors more than 12,000 cloud applications through its cloud access security broker (CASB) technology. Blue Coat’s CASB technology came by way the $280 million acquisition of cloud security vendor Elastica for $280 million in November 2015.
According to Gopal, the data sets that Symantec and Blue Coat collect are different and complement each other. “Taken together, we will have unmatched visibility into and data about the global threat landscape,” Gopal said. “We believe combining these two massive data sets enables Symantec to deliver unparalleled cyber-defense.”