Symantec and The Carlyle Group Amend Terms of Veritas Purchase Agreement
January 19 2016 - 5:50PM
Business Wire
Symantec Corp. (NASDAQ:SYMC) and The Carlyle Group (NASDAQ:CG)
today announced that they have amended the purchase agreement for
Carlyle’s acquisition of Symantec’s Veritas information management
business. Under the amended terms, the purchase price will be $7.4
billion. 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 interest in Veritas. Upon closing of the
transaction, 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 under the prior
purchase agreement.
Symantec and Carlyle entered into the amended terms after
uncertainties developed regarding the transaction. Both Symantec
and Carlyle believe that all key conditions to closing have been
satisfied and intend to close the transaction 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. In addition, this transaction will allow
Symantec to further focus and accelerate its strategy as the
world’s leading cybersecurity company.”
Peter Clare, Carlyle Managing Director and Co-Head of US
Buyouts, said, “Carlyle remains excited about the long-term value
creation opportunity at Veritas and looks forward to closing the
acquisition on January 29th.”
J.P. Morgan Securities LLC is serving as financial advisor to
Symantec and Fenwick & West LLP is serving as legal counsel to
Symantec. Alston & Bird LLP and Latham & Watkins LLP are
serving as legal counsel to Carlyle.
About Symantec
Symantec Corporation (NASDAQ: SYMC) is the global leader in
cybersecurity. Operating one of the world’s largest cyber
intelligence networks, we see more threats, and protect more
customers from the next generation of attacks. We help companies,
governments and individuals secure their most important data
wherever it lives.
NOTE TO EDITORS: If you would like additional information
on Symantec Corporation and its products, please visit the Symantec
News Room at http://www.symantec.com/news.
Symantec and the Symantec Logo are trademarks or registered
trademarks of Symantec Corporation or its affiliates in the U.S.
and other countries. Other names may be trademarks of their
respective owners.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset
manager with $188 billion of assets under management across 126
funds and 160 fund of funds vehicles as of September 30, 2015.
Carlyle's purpose is to invest wisely and create value on behalf of
its investors, many of whom are public pensions. Carlyle invests
across four segments – Corporate Private Equity, Real Assets,
Global Market Strategies and investment Solutions – in Africa,
Asia, Australia, Europe, the Middle East, North America and South
America. Carlyle has expertise in various industries, including:
aerospace, defense & government services, consumer &
retail, energy, financial services, healthcare, industrial, real
estate, technology & business services, telecommunications
& media and transportation. The Carlyle Group employs more than
1,700 people in 35 offices across six continents.
Forward-Looking Statements
This press release contains statements regarding the closing and
benefits of Symantec’s sale of Veritas to The Carlyle Group, which
may be considered forward-looking within the meaning of the U.S.
federal securities laws. These statements are subject to known and
unknown risks, uncertainties and other factors that may cause such
timing to differ from that expressed or implied in this press
release. Such risk factors include the risk of continued
satisfaction of the closing conditions set forth in the definitive
agreement for the transaction, the risk that the transaction may
not be completed when expected, and risks associated with the
future value of Symantec’s equity interest in the Veritas acquiror.
We assume no obligation, and do not intend, to update these
forward-looking statements as a result of future events or
developments.
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version on businesswire.com: http://www.businesswire.com/news/home/20160119006930/en/
SymantecFor MediaKristen Batch,
503-516-6297kristen_batch@symantec.comorFor InvestorsJonathan
Doros, 650-527-5523jonathan_doros@symantec.comorThe Carlyle
GroupLiz Gill, 202-729-5385Elizabeth.gill@carlyle.com
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