Symantec has acquired security software firm Blue Coat for $4.65bn in a bid to strengthen its antivirus and online protection services.
The combined companies will offer a wider mix of products combining Symantec’s threat telemetry with Blue Coat’s networks and cloud security offerings, thereby expanding the scope of protection that both firms can offer.
The purchase will also expand Symantec’s research and development division to over 3,000 engineers and researchers and nine threat response centres.
Symantec chairman Dan Schulman explained that the acquisition will help the company offer security products aimed at the growing adoption of cloud and mobile products and services.
“With this transaction, we will have the scale, portfolio and resources necessary to usher in a new era of innovation designed to help protect large customers and individual consumers against insider threats and sophisticated cyber criminals,” he said.
“Together, we will be best positioned to address the ever-evolving threat landscape, the massive changes introduced by the shift to mobile and cloud, and the challenges created by regulatory and privacy concerns.”
Blue Coat was expected to go public earlier this month, but saw more potential in being acquired by a major security firm than trading its shares in the stock market.
Blue Coat chief executive Greg Clark will hold the position of chief executive at Symantec as part of the deal.
“I am very excited about the opportunity to join Symantec as CEO and look forward to working with the strongest, deepest team in security to realise the many strategic and financial benefits this transaction will create,” he said.
The acquisition is an attempt to reverse Symantec’s waning fortunes. The company offloaded its Veritas information management division in August for $8bn, which followed on from a split into separate security and information firms in 2014 to create more focused operations.
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