Symantec has announced that it is acquiring LifeLock in a deal which is worth $2.3 billion. The company will pay $24 per share for LifeLock.
The deal has been approved by the board of directors of both companies, and they are expecting to finalize things in the first quarter of 2017.
As we all know, consumer cybercrime has reached crisis levels. LifeLock is a leading provider of identity and fraud protection services, with over 4.4 million highly-satisfied members and growing. With the combination of Norton and LifeLock, we will be able to deliver comprehensive cyber defense for consumers,” said Greg Clark, Symantec’s CEO. “This acquisition marks the transformation of the consumer security industry from malware protection to the broader category of Digital Safety for consumers.”
Symantec’s acquisition of LifeLock brings together the #1 leader in consumer security with a leading provider of identity protection and remediation services. The combination will create the world’s largest consumer security business with over $2.3 billion in annual revenue based on last fiscal year revenues for both companies.
Strategic Importance of the Acquisition
The acquisition of LifeLock by Symantec is not just a financial transaction but a strategic move to bolster its consumer security offerings. In an era where cyber threats are becoming increasingly sophisticated, the need for comprehensive security solutions has never been more critical. Symantec, known for its Norton antivirus software, has been a leader in malware protection for years. However, the landscape of cyber threats has evolved, necessitating a broader approach to digital safety.
LifeLock, with its robust identity and fraud protection services, complements Symantec’s existing portfolio. By integrating LifeLock’s services, Symantec aims to offer a more holistic security solution that addresses not just malware but also identity theft and fraud. This is particularly important as more consumers engage in online activities that expose them to various cyber risks.
Benefits for Consumers
For consumers, this acquisition promises enhanced security features and more comprehensive protection. LifeLock’s identity protection services include monitoring for identity theft, alerting users to suspicious activities, and providing remediation services in case of a breach. When combined with Norton’s malware protection, consumers can expect a more robust defense against a wide range of cyber threats.
For example, consider a scenario where a consumer’s personal information is compromised in a data breach. LifeLock’s monitoring services would alert the consumer to the breach, while Symantec’s Norton software would help prevent any malware from exploiting the compromised information. This dual-layer of protection is what makes the combination of Symantec and LifeLock so compelling.
Moreover, the acquisition is expected to drive innovation in the consumer security space. With combined resources and expertise, Symantec and LifeLock can develop new features and services that address emerging threats. This could include advanced threat detection algorithms, improved user interfaces for easier management of security settings, and more personalized security recommendations based on user behavior.
Market Implications
The acquisition also has significant implications for the market. By creating the world’s largest consumer security business, Symantec is setting a new standard for what comprehensive digital safety should look like. This move is likely to prompt other companies in the cybersecurity space to reevaluate their offerings and consider similar integrations to stay competitive.
Furthermore, the deal underscores the growing importance of identity protection in the broader context of cybersecurity. As cybercriminals increasingly target personal information for financial gain, the demand for identity protection services is expected to rise. Symantec’s acquisition of LifeLock positions it well to capitalize on this trend and expand its market share.
You can find out more information about the deal between Symantec and LifeLock at the link below.
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