By Chelsey Dulaney
Symantec Corp. said Tuesday that it has agreed to sell its
Veritas data-storage and recovery to a group of investors led by
private-equity firm Carlyle Group LP for $8 billion in cash.
Carlyle teamed up with Singapore sovereign-wealth fund GIC and
other investors on the deal.
Symantec had been exploring strategic options for the business
as an alternative to its plan to split into two publicly traded
companies. The Wall Street Journal reported in April that Symantec
had contacted private-equity firms and possible industry bidders
about buying Veritas, which Symantec bought in 2005 in an all-stock
deal valued around $13.5 billion.
In a news release, Chief Executive Michael A. Brown said Tuesday
that the sale allows Symantec to focus on growing its security
business.
Symantec, which in the late 1980s pioneered computer security
with its antivirus software, last year announced it would split its
cybersecurity and information-management businesses into two
publicly traded companies. In January, it said the
information-management company would be named Veritas Technologies
Corp.
Mountain View, Calif.-based Symantec has struggled to shift its
consumer-security business to subscriptions from one-time license
sales.
Symantec expects $6.3 billion in cash proceeds from the sale and
said it has added $1.5 billion to its share buyback program.
The deal is expected to close by Jan. 1.
Separately, Carlyle named Bill Coleman as chief executive and
Bill Krause as chairman of Veritas.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires