Greg Clark, CEO of Blue Coat, will head the combined company Security company Symantec is to acquire Web security provider Blue Coat for US$4.65 billion in cash in a deal that will broaden the portfolio of security technologies the combined company can offer customers as they move to the cloud. The deal, which is expected to be closed by the third quarter, will also see Greg Clark, CEO of Blue Coat, taking over as CEO of Symantec and joining its board at the the closing of the transaction. Symantec, well-known for its anti-virus software, has been looking out for a new CEO since April after it was announced that its CEO Michael Brown was stepping down, following poor financial results. Ajei Gopal was appointed as interim president and chief operating officer. The acquisition will combine Symantec’s threat monitoring capabilities with Blue Coat’s network and cloud security offerings to protect customers across cyber endpoints, email, Web, network and servers, Symantec said late Sunday. It said that its data loss prevention capabilities will be applied at the Web proxy and to over 12,000 cloud applications. The combined company, with headquarters in Mountain View, California, will have over 3,000 engineers and researchers, as well as nine Threat Response Centers. The combined company is expected to have $4.4 billion in revenues in fiscal year 2016, of which 62 percent is to come from enterprise security. Despite growing concern about security after high-profile security breaches, Symantec has not been able to translate that into a favorable outcome for the company on the financial front. The company reported in May that revenue for the fourth quarter of its fiscal year ended April 1 was $873 million, down 3 percent from a year earlier, while annual revenue fell 9 percent to $3.6 billion. Symantec plans to finance the transaction using a combination of cash on its balance sheet and $2.8 billion of new debt. Silver Lake, an investor in Symantec, plans to double its investment to $1 billion through acquiring convertible notes of the company. Bain Capital, majority shareholder in Blue Coat, also plans to reinvest $750 million in the combined company through the convertible notes. Symantec announced in January that it completed the sale of its Veritas information management business to a group of investors. Earlier this month, Blue Coat announced that it had publicly filed a registration statement with the U.S. Securities and Exchange Commission for a proposed initial public offering, a move that will now be likely withdrawn. Related content news 2024 global network outage report and internet health check ThousandEyes tracks internet and cloud traffic and provides Network World with weekly updates on the performance of ISPs, cloud service providers, and UCaaS providers. By Ann Bednarz May 22, 2024 47 mins Internet Service Providers Network Management Software Cloud Computing how-to Making a case for case statements on Linux Case statements can allow you to simplify the logic of your scripts. By Sandra Henry-Stocker May 22, 2024 4 mins Linux news AMD holds steady against Intel in Q1 x86 processor shipments finally realigned with typical seasonal trends for client and server processors, according to Mercury Research. By Andy Patrizio May 22, 2024 4 mins CPUs and Processors Data Center news Cisco research highlights network complexity, security challenges Cisco’s 2024 Global Networking Trends Report finds IT leaders are besieged by rising cybersecurity risks, workload types, and distributed infrastructures. By Michael Cooney May 22, 2024 6 mins Network Security Cloud Computing Networking PODCASTS VIDEOS RESOURCES EVENTS NEWSLETTERS Newsletter Promo Module Test Description for newsletter promo module. Please enter a valid email address Subscribe