The Symantec Corp. Board of Directors has unanimously approved a plan to separate the company into two, independent publicly traded companies: one business focused on security and one business focused on information management (“IM”).
“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,” said Michael A. Brown, Symantec president and chief executive officer. “Separating Symantec into two, independent publicly traded companies will provide each business the flexibility and focus to drive growth and enhance shareholder value.”
The separation will allow each company to:
Mr. Brown continued, “Taking this decisive step will enable each business to maximize its potential. Both businesses will have substantial operational and financial scale to thrive.”
Symantec is a leader in security with leading overall market share — twice the nearest competitor — in a market projected to reach US$38 billion in 2018. Its unified security strategy has three primary elements:
The security business generated revenue of US$4.2 billion in fiscal year 2014. The Security business will include: consumer and enterprise endpoint security; endpoint management; encryption; mobile; Secure Socket Layer (“SSL”) Certificates; user authentication; mail, web and data center security; data loss prevention; hosted security; and managed security services.
Information Management Business
Symantec’s IM businesses compete in markets that were US$11 billion in 2013 expanding to US$16 billion by 2018. Its IM business is a market leader, serving 75% of the Fortune 500. The company’s appliance products are outpacing the industry with 27% year-over-year growth, while its backup products rank first in the industry. The IM business will allow organizations to harness the power of their information to enable highly informed decision making, no matter what system it resides on.
The information management strategy will do three things to realize this vision:
The IM business generated revenue of US$2.5 billion in fiscal year 2014. The Information Management business will include backup and recovery; archiving; eDiscovery; storage management; and information availability solutions.