Monday, June 13, 2016

Symantec Buys Blue Coat For $4.6 Billion

Mountain View-based Symantec and Sunnyvale-based Blue Coat announced late Sunday evening, that Symantec will buy Blue Coat for approximately $4.651 billion in cash. As part of the acquisition, the two said that Blue Coat CEO Greg Clark will become CEO of Symantec, and join Symantec's board of directors. The two said that Blue Coat had GAAP revenues of $598M for its fiscal year ending April 30th. As part of the transaction, Silver Lake is investing $500M in convertible notes in Symantec, bringing its stake in the company to $1 billion, and Bain Capital will invest $750M in those convertible notes. David Humphrey of Bain Capital Private Equity joins Symantec's board as part of the funding round. The acquisition comes days after Blue Coat filed for a $100M IPO.