Symantec Decides to Divide Itself into Two
It comes in three’s. The technology industry seems to be on spinoff trend these past few weeks. After eBay and HP, which both announced plans to divide their selves into two different businesses, Symantec before weekend disclosed its own decision to take a similar path.
The PC security firm confirmed speculations that it has been considering splitting itself into two businesses. As expected, one of the spinoff companies would retain the PC security business. The other one would focus on data management.
A decision for the better
In a recent statement released by the still unified company, it explained its view that creating two independent and standalone entities would allow both operations to possibly maximize respective growth opportunities. It said that the move would also result to greater shareholder value.
Moreover, Symantec is confident that its decision would lower operational complexity and in the process allow each of the two businesses to pursue development strategies for possible mergers and acquisitions in the future. The company assured its shareholders that it carefully conducted an extensive review of both businesses before arriving at the decision to pursue a split off.
So what happens to the operations of the two new companies? The security side of Symantec would still operate endpoint management, consumer and enterprise security, mobile, encryption, user authentication, web and data security, mail, data prevention, Secure Socket Layer (SSL) Certificates, managed security services, and hosted security. It will still be headed by CEO and president Michael Brown and CFO Thomas Seifert.
On the other hand, the information management venture would handle operations pertaining to archiving, backup and recovery, eDiscovery, information availability solutions, and storage management. Former Quantum COO John Gannon would be the business’ General Manager, while Symantec’s own Don Rath would be the CFO.
This transaction is set to be completed by the end of 2015. Meanwhile, as mentioned earlier, Symantec is following the lead of eBay and HP. Before the end of September, eBay announced that it would spin off its payment unit PayPal to make it a separate company, while HP announced in the past week that it would divide itself into two publicly listed firms.