Symantec Bulks Up With Veritas

Computer security giant Symantec Corp. has agreed to buy the storage and backup program maker Veritas Software Corp. for about $13.5 billion in stock in a deal that would create a massive software company that provides a wide range of programs to secure and protect networks and computers.

The agreement, announced Thursday, was unanimously approved by the boards of both companies.

Symantec, based in Cupertino, Calif., is the leader in the field of security software with its Norton brand, and would become a leader in the field of data management and backup programs if the deal in completed. Veritas is based in Mountain View, Calif.

The combined company would have revenue about $5 billion next fiscal year that starts April 2005.

Under terms of the deal, each Veritas shares would be exchanged for 1.1242 shares of Symantec common stock. At Wednesday's closing price of $27.38 a share for Symantec, the deal would give Veritas shareholders a 9.5 percent premium for their shares. Veritas shares closed at $28.11 on Wednesday on the Nasdaq Stock Market.

If the deal is completed, Symantec shareholders will own about 60 percent and Veritas shareholders would have 40 percent of the combined company.

John W. Thompson, chairman and CEO, will continue in those posts at the combined company. Gary L. Bloom, chairman, president and chief executive of Veritas, will be vice chairman and president of the combined company which will retain the Symantec name.

The 10-member board directors of the combined company will include 6 members of Symantec's board and 4 from the Veritas board.

"Customers are looking to reduce the complexity and cost of managing their IT infrastructure and drive efficiency with fewer suppliers," Thompson said in a statement.

He said the new company "will help customers balance the need to both secure their information and make it available, thus ensuring its integrity."