Acquisition of Blue Coat Cloud Computing Security Company would strengthen the cloud security muscle power of Symantec Inc.
GreatResponder.com It was announced by the Symantec Inc that the company is going to acquire and merge the Blue Coat cloud security firm for $4.65 billion. The merger would strengthen the cloud computing security portfolio of Symantec, according to the official statement.
The details of the entire balance sheet and acquisition terms and conditions were also announced. According to the statement, the current cash on of the company stands at $5.9 billion, while new debt will remain at about $2.8 billion that will be paid to Blue Coat in the future. Symantec will pay $1.85 billion to Blue Coat from its current cash on the balance sheet.
It was also made public that the CEO of the Blue Coat, Greg Clark would also be hired as the CEO of the Symantec company. The financial terms and conditions for this position were not available in the statement issued by the company.
It is very important to note that Symantec is a big name in the domain of IT security. But, Blue Coat was posing serious challenges for the company in the domain of the cloud computing arena. It was a good move of Symantec to merge the Blue Coat Company to strengthen its power of security services in the domain of cloud based services.
Meanwhile, the performance credentials of the Blue Coat company were very impressive during the past few years. In 2016, the company was growing at about 17% with a revenue of over $755 million. The retention rate of its satisfied customers in the domain of cloud security was over 95% out of its large customer base of over 15000 enterprise customers.
With this merger of the two big companies in the domain of IT security, Symantec Inc would become the largest IT security company in terms of its annual revenue. It will also boost its standing in the marketplace where a fierce competitive environment prevails.
Many technical experts and financial gurus are welcoming this merger as good augment for the cloud based services in the future. The share prices of Symantec reflected the positive mood of the market with a hike of over 18% in the market.
Many private equity fund companies are infusing substantial funds to show their confidence in the Symantec’s present move.
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