Symantec shells out $13.5bn for Veritas

Symantec and Veritas today announced a definitive agreement to merge in an all-stock transaction valued at approximately $13.5bn.

The companies stated that the tie up, effectively a Symantec takeover of Veritas, would create a group capable of providing information security and availability offerings across all platforms, serving a wide range of customers from consumers and small businesses to large enterprise corporates.

Under the terms of the agreement, which has been unanimously approved by both boards of directors, Veritas stock will be converted into Symantec stock at a fixed exchange ratio of 1.1242 shares of Symantec common stock for each outstanding share of Veritas common stock.

On completion, Symantec shareholders will own approximately 60 per cent and Veritas shareholders approximately 40 per cent of the combined company. The group will operate under the Symantec name.

John Thompson, chairman and chief executive at Symantec, will continue in the same role at the new company.

Gary Bloom, chairman, president and chief executive at Veritas, will become vice-chairman and president of the combined company.

"Based on IDC data, the total market opportunity for the combined company today is approximately $35bn and is expected to grow to $56bn by 2007," said Bloom.

The board of the combined company will include six members of Symantec's current board and four from Veritas.

The transaction is expected to close in the second quarter of 2005 and is subject to customary closing conditions, including approval by regulators and the shareholders of both companies.