Symantec and Carlyle seal the Veritas deal

Symantec will sell its data storage business to Carlyle Group LP, Reuters reported on Tuesday.

The American software security company headquartered in Mountain View, California, might announce the deal even today, when it presents its quarterly earnings, a person familiar with the matter said.

The person asked not to be named because the matter is private, Reuters added.

Symantec was unavailable for a comment, while Carlyle declined to speak.

The media have started reporting on the possible sale of Symantec's data storage business Veritas to a private equity firm last month.

Bloomberg was first to react, saying Carlyle will pay somewhere between £4.49bn and £5.13bn for the deal. The business has forecast £1.67bn annual revenues.

Symantec bought Veritas for $13.5bn in 2005 (£8.66bn), so it’s making a rather large loss on the deal.

A sale to PE would raise guaranteed cash, whereas turning Veritas into a publicly treaded business would give it shares, which it would have to sell at a price set by the market over a longish period, so as not to depress the share price.

Veritas has four lines of business:

Backup and recovery software (NetBackup and Backup Exec)

Appliances

Information availability

Information intelligence – archiving, e-discovery

In 2014, Symantec has split into two companies: Security and data storage.

Michael Brown, Symantec’s president and CEO, commented: “As the security and storage industries continue to change at an accelerating pace, Symantec’s security and IM businesses each face unique market opportunities and challenges. It has become clear that winning in both security and information management requires distinct strategies, focused investments and go-to market innovation.”