February 1, 2016
Veritas Technologies today officially severed its split from Symantec Corp. and became an independent company owned by The Carlyle Group and led by new CEO Bill Coleman.
The company says it will provide businesses with software and services to help them “collect, protect, analyze and optimize their data, so that organizations can make smarter decisions, manage risk and minimize expense growth.”
Last week, Symantec Corp. and The Carlyle Group 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 US$7.4 billion. Symantec and Carlyle also agreed to increase the amount of offshore cash remaining in Veritas from US$200 million to US$400 million, which will result in a net consideration to Symantec of US$7 billion.
This consideration will consist of US$6.6 billion in cash and a US$400 million equity interest in Veritas.
Upon closing of the transaction, Symantec expects to receive approximately US$5.3 billion in after-tax cash proceeds and the equity interest in Veritas compared to US$6.3 billion after-tax proceeds under the prior purchase agreement.
“In the era of the cloud, many organizations won’t own their data centre and many might not even own their applications,” said Coleman. “Other than your team, data is the most critical asset of value in the 21st century. “
Veritas said it is “well positioned to innovate and deliver the benefits of information management.” The company pursues market segments that in aggregate it said represents a US$24 billion market opportunity by 2018. These markets include backup and recovery, integrated appliances, information availability and archiving offerings.
Laura DuBois, group vice president of enterprise storage, server and infrastructure software at IDC, said “IT leaders continue to face constrained IT budgets while businesses and consumers alike continue to create data unabated.
“Successful IT organizations must not only identify simple and cost-effective solutions to manage their company’s information but also support the use of information for their company’s competitive advantage.”