Symantec is one of the most prominent security firms in the world of technology today. Even great companies need to look towards the future and devise new strategies to remain ahead of their competitors. Symantec Corp plans to acquire identity theft protection service provider LifeLock Inc for the price of US$2.3bn. Interestingly enough, that entire price would be paid in cash.
A Big And Bold Move By Symantec
Norton software was once world renowned for its antivirus protection, as well as its firewall services. Over time, these solutions evolved into an all-in-one cyber security toolkit, protecting users from harm when they conduct their business on the internet. But in this day and age of evolving technologies, a new strategy is needed to boost Norton sales.
LifeLock Inc may hold the answer to this problem for Symantec. The US-based company focuses their technology on preventing identity theft, a key issue that is becoming far more prevalent in recent months. With the mounting number of data breaches and ill- protected data silos, personal information is up for grabs for anyone with moderate hacking skills.
Symantec plans to purchase Lifelock in a US$2.3bn cash deal and integrate the identity theft protection service into their Norton offering. This is a bold strategy, but given the declining sales numbers for Symantec’s flagship security product, something has to change. Moreover, a lot of users rely on mobile devices, rather than computers, which pushes down sales figures even further.
The time has come for Symantec to diversify their portfolio of security services. This small acquisition spree, preceded by the purchase of Blue Coat Inc in August, is designed to drive additional revenue to the company. In the business world, one often has to spend capital to bring in fresh money.
Moving away from more traditional cyber security offerings might not be a bad idea, though. Competition in the security department is heating up, yet consumers are only one potential market for these solutions. Enterprises are beefing up their cyber security defenses rather quickly, and with cash to burn, Symantec wants to see if they can gain a foothold in that market as well.
Moreover, the acquisition will bring a lot of new clients to Symantec. LifeLock servers are used by government agencies, creditors, and merchants all over the US, a valuable market for any company in the cyber security business. Identity theft is a critical issue that needs to be addressed sooner rather than later.
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