Symantec Corp. and Veritas Software Corp. today announced that the companies have entered into a definitive agreement to merge in an 'all-stock' transaction.
The deal is estimated to be worth $13.5 billion.
Under the agreement, which has been unanimously approved by both boards of directors, Veritas stock will be converted into Symantec stock. Upon closing of the deal, Symantec shareholders will own approximately 60 percent and Veritas shareholders approximately 40 percent of the combined company. The transaction will be tax-free to shareholders of both companies.
The combined company will operate under the Symantec name.
John Thompson, Chairman and Chief Executive Officer of Symantec, will continue as Chairman and CEO of the combined company. Gary Bloom, Chairman, President and Chief Executive Officer of Veritas, will be Vice-Chairman and President of the combined company. The board directors of the combined company will include 6 members of Symantec's current board and 4 from Veritas' current board for a total of 10 members.
John Thompson of Symantec said,
"Customers are looking to reduce the complexity and cost of managing their IT infrastructure and drive efficiency with fewer suppliers. The new Symantec will help customers balance the need to both secure their information and make it available, thus ensuring its integrity. We believe that information integrity provides the most cost-effective, responsive way to keep businesses up, running and growing in the face of system failures, Internet threats or natural disasters."
While Gary Bloom of Veritas commented,
"Our customers have told us that one of their most critical needs is to enable 24x7 access to information. At the same time, they must maintain tight security, comply with all regulatory requirements and operate within their existing budget constraints. Through our unique portfolio of solutions, Symantec and VERITAS are best positioned to address the ever-growing needs of our customers. Based on IDC data, the total market opportunity for the combined company today is approximately $35 billion and is expected to grow to $56 billion by 2007."
The merger is expected to be complete in middle of 2005.
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