Symantec lowers sale price of Veritas to $7.4 billion

Symantec CEO Michael A Brown
Symantec today lowered the sale price of Veritas information management business, which will be sold to The Carlyle Group, to $7.4 billion.

As per the revised purchase price, Symantec and Carlyle also agreed to increase the amount of offshore cash remaining in Veritas from $200 million to $400 million, which will result in a net consideration to Symantec of $7 billion.

This consideration will consist of $6.6 billion in cash and a $400 million equity in Veritas. Symantec expects to receive approximately $5.3 billion in after-tax cash proceeds and the equity interest in Veritas compared to $6.3 billion after-tax proceeds.

Symantec and Carlyle entered into the amended terms after uncertainties developed regarding the transaction. Transaction will now be closed on January 29, 2016.

Michael A. Brown, Symantec president and CEO, said: “In a difficult environment, we can move forward with a high degree of certainty around closing a transaction that represents attractive value for shareholders.”

The sale of Veritas will allow Symantec to accelerate its strategy as the world’s leading cybersecurity company.

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