Cybersecurity specialist Symantec Corp. (SYMC) has made headlines with the announcements of two large acquisitions of smaller security specialists over the past year.
Symantec’s growth-by-buyout strategy is part of a larger initiative, as the firm transforms from bulky systems sales to offer cloud-based security solutions to enterprises and consumers alike.
Blue Coat Boosts Enterprise Security Segment
In June, the Mountain View, Calif.-based cybersecurity pioneer announced plans to buy cloud security platform Blue Coat Systems in a deal worth $4.65 billion. Symantec’s integration of Blue Coat boosted the firm’s enterprise security segment, which constituted 60% of total revenues in fiscal Q217. The segment, including endpoint security and user authentication, saw non-GAAP revenue surge 24% to $610 million in the most recent quarter. With Blue Coat, Symantec can now boast a comprehensive suite of enterprise security solutions for email, cloud, endpoint and network security.
LifeLock Bolsters Symantec in Consumer Space
Symantec’s acquisition of identity and theft protection company LifeLock Inc. (LOCK), set to close in early this month, will help the firm beef up its presence in the emerging consumer security space. In light of slowing PC demand, Symantec will buy the Tempe, Ariz.-based business in a deal worth $2.3 billion in order to bolster its Norton AntiVirus product with cyberdefense for consumers. Symantec will integrate LifeLock’s offering with its Norton suite, adding 4.4 million users to Norton’s preexisting 50 million. Symantec Chief Executive Greg Clark stated, “this acquisition brings $660 million in revenue to the consumer business and returns it to longer sustainable growth.”
As old-guard tech firms strategize to stay competitive in the evolving cybersecurity landscape, most of the big players are shifting their focus to developing solutions for emerging markets such as the Internet of Things (IoT), the cloud and mobile.
First published at INVESTOPEDIA