Symantec Corp. has signed a definitive agreements to acquire PGP Corporation and GuardianEdge Technologies, Inc., two privately-held companies operating in the email and data encryption market.
Under the terms of the agreements, Symantec will acquire PGP Corporation for a purchase price of approximately $300 million in cash and GuardianEdge for a purchase price of approximately $70 million in cash.
Encryption technology is an important element of an information-centric security solution, as critical information is increasingly on mobile devices and in the cloud. State and national governments are enacting more stringent and costly compliance mandates, such as the HITECH and UK Data Protection Acts, which are driving the need to encrypt sensitive information and protect an individual’s privacy. Also, the increased costs and frequency of data breaches are driving the adoption of encryption as companies strive to mitigate risk and protect their critical information from cybercriminals.
Symantec says by bringing together PGP and GuardianEdge’s standards-based encryption capabilities for full-disk, removable media, email, file, folder and smartphone, with Symantec’s endpoint security and data loss prevention offerings, the company will have the broadest set of integrated data protection solutions. This portfolio will address the data protection needs of all major customer segments from the largest enterprises and governments to small businesses and individuals. Together these acquisitions will expand Symantec’s addressable security market opportunity and will position the company as a leader in the fast growing encryption market which, according to IDC, is estimated to reach $1.7 billion in 2013.
“As information becomes increasingly mobile, it’s essential to take an information-centric approach to security. Our market-leading data protection solutions provide the intelligence for customers to better understand what data is important, who owns it and who accesses it,” said Francis deSouza, senior vice president, Enterprise Security Group, Symantec. “With these acquisitions we can further protect information by using encryption in an intelligent and policy-driven way to give the right users access to the right information, enabling the trust that individuals and organizations need to operate confidently in an information-driven world. We’re now able to offer the industry’s most comprehensive solution across encryption and data loss prevention for protecting confidential data on endpoints, networks, storage systems and in the cloud.”
Following the close of these transactions, Symantec intends to bring together key features and functionality from each company’s offerings and standardize on the PGP key management platform in order to deliver centralized policy and key management capabilities across the entire suite of encryption solutions.
Symantec also intends to integrate the PGP key management platform into the Symantec Protection Center, which simplifies security information management by providing customers consolidated access to threat, security and operational dashboards and reporting. Integrating the PGP key management platform into the Symantec Protection Center will further enhance the management of endpoint security, data loss prevention and gateway security products, which are also integrated with Symantec Protection Center, allowing customers to more seamlessly protect information.