Symantec to acquire VeriSign's security business

Symantec Corp. has announced that it will 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. The business contributed approximately $101.9 million, comprising roughly 39 percent of VeriSign's revenues in the quarter ended March 31, 2010.

Under the terms of the agreement, Symantec will purchase the specific assets from VeriSign, including the majority stake in VeriSign Japan, as well as certain brands and trademarks such as VeriSign's check mark, for approximately $1.28 billion in cash. Subject to the customary closing conditions and requisite regulatory approvals, the transaction is expected to close in the September quarter.

Symantec has indicated that it expects to offer positions to most of VeriSign's authentication employees to support the business. VeriSign has agreed to support the business after the transaction's close by providing transitional services to Symantec. Following the close of the transaction, VeriSign expects to eliminate some positions that will not move to Symantec and that will not be required for its future operations.

Symantec said the combination of VeriSign's security products, services and recognition as the most trusted brand online and Symantec's leading security solutions and widespread distribution will enable it to deliver on its vision of a world where people have simple and secure access to their information from anywhere. It plans to help businesses incorporate identity security into a comprehensive framework for IT to confidently and securely adopt new computing models.

Mark McLaughlin, VeriSign president and CEO said the transaction will let VeriSign focus on its growing Internet infrastructure services business, where the company expect to build on its expertise and success as the longtime operator of the .com and .net domain infrastructures. "Following the close of this transaction, VeriSign will have a strong balance sheet, growth opportunities and a continuing commitment to deliver value to our customers and shareholders," he said. McLaughlin also said that the market for security and authentication services is rapidly changing in favor of large distribution channels, extensive product sets and integrated service delivery, and Symantec's position as an end-to-end security provider would allow it to better serve its authentication customers. Following the close of the transaction, VeriSign said that its remaining business will comprise its Naming Services business, which contributed approximately $162 million or 61 percent of the company's revenues in the quarter ended March 31, 2010.