- Board declares $4.00 per share special
dividend and authorizes $2.3 billion in share repurchases to be
completed by end of March 2017
- Targets cost savings of approximately
$400 million by the end of fiscal year 2018
- Annual dividend adjusted to $0.30 per
share to reflect reduced domestic cash flow following Veritas sale
and special dividend
- Board to appoint Silver Lake Managing
Partner Ken Hao to Symantec Board
Symantec Corp. (NASDAQ: SYMC) (“Symantec”) and Silver Lake, the
global leader in technology investing, today announced that Silver
Lake will make a $500 million strategic investment in Symantec. In
connection with Silver Lake’s investment, the Symantec Board has
increased the Company’s total capital return program to $5.5
billion. Through this capital return, Symantec will return to its
shareholders funds representing all of the after-tax cash proceeds
from the recent sale of Veritas.
The Symantec Board expects to complete the full $5.5 billion
capital return by the end of March 2017 in the form of:
- $500 million accelerated share
repurchase completed in January 2016;
- A special dividend of $4.00 per share,
equaling $2.7 billion; and
- $2.3 billion in future share
repurchases.
The $4.00 per share special dividend will be payable on March
22, 2016, to stockholders of record as of the close of business on
March 8, 2016. The special dividend will be in addition to
Symantec’s quarterly dividend.
The Board has also determined to adjust its annual dividend
starting first quarter fiscal year 2017 to $0.30 per share, or
$0.075 per share per quarter, to reflect reduced projected domestic
cash flow, following the sale of Veritas, and the one-time special
dividend. This dividend would represent a significant portion of
anticipated domestic operating cash flow of the business. Symantec
may increase its dividend as it realizes the benefits of its
planned cost-savings initiatives.
Michael A. Brown, Symantec president and CEO, said, “Silver
Lake’s investment in Symantec validates the significant progress
we’ve made in our transformation and is a tremendous vote of
confidence in the Company. As we execute on Symantec’s unified
security strategy as a focused company, we look forward to driving
significant value for all shareholders.”
In conjunction with Silver Lake’s investment, Ken Hao, managing
partner of Silver Lake, will be appointed to Symantec’s Board of
Directors, effective at the close of the investment. With Mr. Hao’s
appointment, the Symantec Board will be comprised of ten directors,
nine of whom are independent.
“As a premier cybersecurity provider, Symantec has the potential
to solve some of the most significant challenges facing the rapidly
growing market for security solutions,” said Hao. “We look forward
to partnering with Symantec to achieve its long-term strategic
vision.”
Brown added, “Ken brings extensive industry knowledge and
operational expertise from managing and advising leading technology
businesses. We are delighted that he will be joining Symantec’s
Board and look forward to his contributions.”
Symantec also announced today that it is targeting cost savings
of approximately $400 million to be achieved by the end of its
fiscal year 2018.
Symantec will fund the $5.5 billion in capital return through a
combination of the after-tax cash proceeds from the Veritas sale,
the $500 million investment from Silver Lake, additional debt
anticipated to be raised and available cash on hand.
Under the terms of the agreement, Silver Lake is purchasing $500
million aggregate principal amount of 2.5% convertible senior
unsecured notes due 2021 with an initial conversion price of $21.00
per share. Symantec expects to complete the sale of the notes on or
about March 4, 2016, subject to customary closing conditions.
Additional information may be found in the Form 8-K that will be
filed with the U.S. Securities and Exchange Commission.
In a separate press release issued today, Symantec announced the
results of its fiscal third quarter 2016.
J.P. Morgan Securities LLC is serving as financial advisor to
Symantec and Fenwick & West LLP is acting as legal counsel.
Simpson Thacher & Bartlett LLP is serving as legal counsel to
Silver Lake.
This announcement is neither an offer to sell nor a solicitation
of an offer to buy any of these securities and shall not constitute
an offer, solicitation, or sale in any jurisdiction in which such
offer, solicitation, or sale is unlawful. The notes and the shares
of common stock issuable upon conversion of the notes, if any, will
not be registered under the Securities Act of 1933, as amended (the
“Securities Act”), or any state securities laws, and unless so
registered, may not be offered or sold in the United States except
pursuant to an exemption from the registration requirements of the
Securities Act and applicable state laws.
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 Silver Lake
Silver Lake is the global leader in technology investing, with
over $26 billion in combined assets under management and committed
capital. The firm’s portfolio of investments collectively generates
more than $85 billion of revenue annually and employs more than
170,000 people globally. Silver Lake has a team of approximately
100 investment and value creation professionals located in New
York, Menlo Park, San Mateo, London, Hong Kong and Tokyo. The
firm’s current portfolio includes leading technology and
technology-enabled businesses such as Alibaba Group, Avaya,
Broadcom Limited, Cast & Crew, Ctrip, Dell, Global Blue,
GoDaddy, Intelsat, Motorola Solutions, Quorum Business Solutions,
Red Ventures, Sabre, SMART Modular, Vantage Data Centers, and
WME/IMG. For more information about Silver Lake and its entire
portfolio, please visit www.silverlake.com.
Forward-Looking Statements
This press release contains forward looking statements regarding
anticipated expense reduction and the Company’s planned capital
return, including statements regarding the anticipated size and
timing of accelerated share repurchase transactions and dividends,
anticipated dividend increases and planned debt. These statements
are subject to known and unknown risks, uncertainties and other
factors that may cause our actual results to differ materially from
results expressed or implied herein. Such risk factors include the
Company’s future financial performance; general economic
conditions; maintaining customer and partner relationships; the
competitive environment in the software industry, fluctuations in
tax rates and currency exchange rates; the timing and market
acceptance of new product releases and upgrades; the successful
development of new products, and the degree to which these products
and businesses gain market acceptance. The Company assumes no
obligation, and does not intend, to update these forward-looking
statements prior to reporting its third quarter results. Additional
information concerning risks that could cause actual results to
differ from current expectations is contained in Risk Factors, set
forth in Part I, Item 1A of the Company’s Annual Report on Form
10-K for the fiscal year ended April 3, 2015.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160204006554/en/
Media ContactsSymantec Corp.Kristen Batch,
503-516-6297kristen_batch@symantec.comorSilver LakePatricia Graue,
212-333-3810silverlake@brunswickgroup.comorInvestor
ContactsSymantec Corp.Jonathan Doros,
650-527-5523jonathan_doros@symantec.com
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