Symantec and Blue Coat, Inc. have announced that they have entered into a definitive agreement under which Symantec will acquire Blue Coat for approximately $4.65 billion in cash.
According to the press release, the transaction has been approved by the Boards of Directors of both companies and is expected to close in the third calendar quarter of 2016. Greg Clark, Chief Executive Officer of Blue Coat, will be appointed Chief Executive Officer of Symantec and join the Symantec Board upon closing of the transaction.
Symantec, well-known for its anti-virus software, has been looking out for a new CEO since April after it was announced that its CEO Michael Brown was stepping down, following poor financial results. Ajei Gopal was appointed as interim president and chief operating officer.
The acquisition will combine Symantec’s threat monitoring capabilities with Blue Coat’s network and cloud security offerings to protect customers across cyber endpoints, email, Web, network and servers. According to Symantec, its data loss prevention capabilities will be applied at the Web proxy and to over 12,000 cloud applications.
The combined company, with headquarters in Mountain View, California, will have over 3,000 engineers and researchers, as well as nine Threat Response Centers and is expected to have $4.4 billion in revenues in fiscal year 2016, of which 62 percent is to come from enterprise security.