Symantec Set To Divide Itself Into 2 Publicly Traded Companies

Splitting Up: Symantec Set To Divide Itself Into 2 Publicly Traded Companies

Software maker Symantec most well known for its Norton antivirus has decided to go te HP and Ebay Way. The software giant has decided to split into two companies where one shall focus on security while the other focuses on storage and backup. This is a move to generate more revenue and attract profits.

“As the security and storage industries continue to change at an accelerating pace, Symantec’s security and IM businesses each face unique market opportunities and challenges. It has become clear that winning in both security and information management requires distinct strategies, focused investments and go-to market innovation. Separating Symantec into two, independent publicly traded companies will provide each business the flexibility and focus to drive growth and enhance shareholder value” Michael Brown, Symantec’s freshly appointed president and CEO, said in a statement to Bloomberg.

Bloomberg also reports that analysts have long since sought the division of this company. As its stock and financial performance has been falling behind as compared to other software makers, Symantec has fired 2 CEOs since 2012. It has now split the company into 2 in a bid to boost share prices and reverse the troubled acquisition of Veritas.

Veritas was a “cash cow” when it was purchased, Reuters reports. Slowing sales have dented the value of this company and the board has now made a decision, which analysts quoted by Reuters are saying “strategically makes sense for the company and its investors." 2014 has now become the year for spin-offs.

Reuters has reported that nearly 60 spinoffs are expected to be completed this year which is the highest number since the turn of this century, quoting research by Spin-Off. Potential buyers for the two surviving Symantec businesses include CISCO and Net App Inc.

Michael Brown will continue to be Symantec's CEO, and Thomas Seifert will be its CFO. John Gannon will be GM of the information management business prior to the spinoff, according to Reuters. The splitsville club keeps growing as a slew of companies take up spin-offs, Forbes reports.

The California-based company has made this decision after an extensive business review, it announced to the media. With a market cap of USD 16.2 billion, the stakes are high for Symantec whose 2 businesses have largely been seen as incompatible with each other, according to analysts quoted in Bloomberg. Trade pundits will now be happy to know the divorce is finally on its way.