Silver Lake will make a $500 million strategic investment in enterprise network security solutions vendor Symantec.
Following the investment, the 10-member board of Symantec will have one representative from Silver Lake.
To improve its profitability, Symantec is targeting cost savings of approximately $400 million to be achieved by the end of its fiscal year 2018. The company did not share specific details on cost cutting plans. The company is opting for cost cut after reporting 23 percent drop in net income to $170 million in Q3 fiscal 2016.
Symantec said its revenue fell 6 percent to $909 million in its third quarter of fiscal year 2016, ended January 1, 2016.
Symantec said its enterprise security revenue grew for the third consecutive quarter and expects continued growth through FY 2017.
Michael A Brown, president and CEO, Symantec said: “I’m pleased with the progress we’ve made against our priorities, including strengthening our security portfolio, enhancing our go-to-market capabilities, improving our cost structure and efficiently allocating capital.”
