HALISTER: Symantec to Buy Blue Coat in $4.65b Cash Deal

Symantec to Buy Blue Coat in $4.65b Cash Deal

(Bloomberg) -- Symantec expects $150m in annual net cost synergies in addition to previously announced $400m in planned net cost savings, Symantec CFO Thomas Seifert says in statement.
  • Company will finance deal with existing and $2.8b of new debt; expects to close transaction in 3Q
  • Acquisition to improve Symantec’s profitability, deal is expected to be “significantly accretive” to non-GAAP earnings
  • Blue Coat CEO Greg Clark to be appointed CEO of Symantec
  • Reiterates 1Q guidance, maintains plans for previously announced $5.5b capital return program with remaining $1.3b to be returned by end of fiscal year
  • As part of transaction Silver Lake agreed to make additional $500m investment in Symantec’s 2% convertible notes due 2021, Bain Capital makes investment of $750m in convertible notes
  • JP Morgan is lead financial advisor to Symantec; Barclays, BofA Merrill Lynch, Citi, JP Morgan, Wells Fargo are financial advisors, provide debt financing to Symantec
  • Goldman Sachs is lead financial advisor to Blue Coat; Morgan Stanley, Credit Suisse are also financial advisors
Link to Statement
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
SYMC US (Symantec Corp)
6821Z US (Bain Capital Private Equity LP)

People
Thomas Seifert (Symantec Corp)
Gregory Clark (Blue Coat Systems Inc)

To de-activate this alert, click here

UUID: 7947283