Symantec to buy VeriSign unit for $1.3B: reports

Security vendor Symantec Corp. is reported to be close to buying Internet infrastructure services vendor VeriSign Inc.’s security business for US$1.3 billion.

 

The Wall Street Journal quoted unidentified sources who are said to be close to the deal as saying it would give Symantec control of VeriSign’s $410 million authentication business, which provides a range of encryption technologies and services.

 

A Reuters report late Tuesday also quoted an unnamed source as saying that VeriSign had been shopping for a buyer for its security unit recently.

 

Meanwhile, other news reports fuelled the speculation by adding that VeriSign CFO Brian Robins had abruptly pulled out of a JP Morgan investors conference on Tuesday afternoon.

 

News of the possible deal pushed VeriSign’s shares up by $1.39 or 5.18 per cent to $28.23 Tuesday afternoon. But with the expected deal not announced until late Tuesday, VeriSign’s shares yielded back some of that gain in after hours trading. Shares of Symantec meanwhile were down 2.03 per cent to $15.95 on news of the rumored deal.
All figures are in U.S. currency.

 

A spokesman for Symantec said the company would not comment on rumors and speculations. A VeriSign spokeswoman said also the company would not comment.

 

If the deal was to happen, it would be the second security related business unit that VeriSign has shed in the past few months. Last October the company sold its Global Security Consulting unit to AT&T in a deal, the terms of which were not disclosed.

 

The deal gave AT&T control of a VeriSign business unit focused on security and ID management related consulting services for Fortune 500 companies.

 

At that time, VeriSign CEO Mark Mclaughlin was quoted as saying that the sale was in keeping with VeriSign’s goals to divest itself of certain business units.

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now