Symantec Corp. has signed a definitive agreement to acquire VeriSign�s identity and authentication business, which includes the Secure Sockets Layer (SSL) Certificate Services, the Public Key Infrastructure (PKI) Services, the VeriSign Trust Services and the VeriSign Identity Protection (VIP) Authentication Service.
�With the anonymity of the internet and the evolving threat landscape, people and organisations are struggling to maintain confidence in the security of their interactions, information and identities online. At the same time, people�s personal and professional lives have converged and they want to use their various digital devices to access information wherever they are without jeopardising their privacy,� said Enrique Salem, president and CEO, Symantec.
�IT is faced with the challenge of giving users the appropriate access, while ensuring that corporate data is not at risk. We believe the solution to this dilemma lies in the ubiquity of identity-based security. With the combined products and reach from Symantec and VeriSign, we are poised to drive the adoption of identity security as the means to provide simple and secure access to anything from anywhere, to prevent identity fraud and to make online experiences more user-friendly and hassle-free.�
Under the terms of the agreement, Symantec will purchase the specific assets from VeriSign, including the majority stake in VeriSign Japan, for a purchase price of approximately US$1.28 billion in cash. Symantec expects the transaction to be 9 cents dilutive to non-GAAP earnings per share in fiscal year 2011, due to the purchase price accounting write down of deferred revenue, and accretive to non-GAAP earnings per share in the September 2011 quarter. The agreement is subject to customary closing conditions, including regulatory approvals and is expected to close in the September quarter.
The company says through this acquisition it can help businesses incorporate identity security into a comprehensive framework so that IT can confidently and securely adopt new computing models, from cloud computing to social networking and mobile computing to user-owned devices that promise operational efficiencies and freedom of choice for their employees and customers
VeriSign�s SSL Certificate Services provide users with assurance that the websites they are interacting with are legitimate and secure and that their information will be safe when they share it with that site. The VeriSign check mark signifies the authenticity of the websites that users visit and assures them that any sensitive information they share with that site will be encrypted during online transactions.
With more than one million web servers using VeriSign SSL certificates and an infrastructure that processes more than two billion certificate checks daily, VeriSign has the leading share of the SSL market. The addressable market for the server and user authentication segment is estimated to reach US$1.6 billion by 2013.
Symantec�s current portfolio and along with assets from VeriSign provide the depth and breadth of technologies to make identity-based security of information more universal and part of a comprehensive security solution. By combining VeriSign�s SSL Certificate Services with Symantec Critical System Protection or Protection Suite for Servers, Symantec will help organisations ensure a higher level of security on their web servers as well as verify that security, providing users with the trust and confidence necessary to do business online.