Symantec Gets $500 Million Investment From Silver Lake
February 04 2016 - 05:30PM
Dow Jones News
By Ezequiel Minaya
Symantec Corp. said Thursday that private-equity firm Silver
Lake would make a $500 million investment in the cybersecurity
company and add one of its managing partners to Symantec's
board.
Shares of Symantec jumped 8.6% to $20.83 in after-hours
trading.
With the move, Symantec's board has agreed to boost the
company's so-called capital-return program to $5.5 billion,
returning all of the proceeds to shareholders from the recent sale
of its Veritas data-storage and recovery business.
That will happen through a new $500 million accelerated
stock-buyback program, a $4-a-share special dividend and $2.3
billion in additional stock buybacks. The program is slated to be
completed March 2017. Symantec also unveiled that it aims to reach
$400 million in cost savings by the end of fiscal 2018.
Silver Lake will make its investment by buying $500 million of
notes due 2021 with an initial conversion price of $21 a share.
Symantec sees that sale being completed in early March.
Ken Hao, managing partner of Silver Lake, will be named to
Symantec's board, bringing the number of directors to 10.
Symantec in August agreed to sell its Veritas data-storage and
recovery business to investors led by private-equity firm Carlyle
Group LP for $8 billion. Last month, Carlyle Group, however, cut
its offer to $7.4 billion citing unspecified and emerging
"uncertainties."
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
February 04, 2016 17:15 ET (22:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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