In the wake of the Oracle/PeopleSoft merger, here's another big one that could hit soon. Wow. http://cbs.marketwatch.com/tools/qu...={C40AAB4B-82E7-49A2-8288-1AD709E44078}&symb= Report: Symantec in Talks With Veritas 12/14/2004 11:35:00 AM SAN JOSE, Calif., Dec 14, 2004 (AP Online via COMTEX) -- Shares of Symantec Corp. fell more than 12 percent Tuesday after a published report said the computer security giant was in talks to acquire storage and backup program maker Veritas Software Corp. for more than $13 billion. Veritas shares rose 9 percent. A deal, which reportedly could be announced as early as this week, would create a massive software company that provides a wide range of programs to secure and protect networks and computers. If consummated, it would be one of the largest acquisitions in the industry. The New York Times reported Tuesday that negotiations have been going on for more than a month and are nearly complete. But the newspaper, which cited unnamed executives, could not determine the terms of the deal and added that several major issues remain unresolved. A spokeswoman for Cupertino-based Symantec did not immediately return a call seeking comment early Tuesday, nor did spokesmen for Mountain View-based Veritas. Symantec, the leader in the field of security software with its Norton brand, has been on an acquisition binge in recent months as it attempts to broaden its offerings to deal with the latest computer and networking threats, specifically spam and spyware. Since mid-2003, it has bought Brightmail, ON Technology and SafeWeb in deals costing nearly $500 million. The companies specialized in either fighting spam or simplifying management of corporate networks. If it acquires Veritas, Symantec would instantly become a leader in the field of data management and backup programs. Veritas has an estimated 40 percent of the backup-and-archiving software market, according to the research firm IDC. It has a 60 percent share of the market for storing and organizing data files. In the most recent quarter, which ended Sept. 30, Veritas earned $96.2 million on sales of $496.7 million. In the same period, Symantec earned $135.6 million on sales of $618.3 million. Shares of Veritas surged $2.27, or 9 percent, to $27.46 in morning trading Tuesday on the Nasdaq Stock Market. Symantec shares lost $4.05, or 12.3 percent, to $28.81.
Not that anyone appeared to care the first time, but it's now official. http://money.cnn.com/2004/12/16/technology/symantec_veritas/index.htm Symantec to buy Veritas Stock deal worth about $13.5B, providing storage software maker Veritas with 10% premium. December 16, 2004: 8:24 AM EST NEW YORK (CNN/Money) - Security software provider Symantec announced Thursday it is buying back-up and storage software maker Veritas Software in a stock deal worth about $13.5 billion. The companies said that Veritas (Research) shareholders would receive 1.1242 shares of Symantec (Research) for each of their shares. Based on Wednesday's closing prices, that represents a premium of just less than 10 percent. But Vertitas' price is up 22 percent since the first press reports of the rumored deal earlier this week. Upon closing, Symantec shareholders will own about 60 percent of the combined company, which will retain the Symantec name, with Veritas shareholders owning the rest. The transaction is expected to be tax-free to shareholders. Symantec is a leading maker of security software under the Norton brand of products, used to protect computers against viruses and spam. Veritas makes data protection, storage and server management software and its products are used by 99 percent of the Fortune 500, according to the company. "Customers are looking to reduce the complexity and cost of managing their IT infrastructure and drive efficiency with fewer suppliers," said a statement from Symantec Chairman and CEO John Thompson. It is the second major software merger announced this week. Monday Oracle announced it had reached a $10.3 billion cash deal with rival business software provider PeopleSoft, ending an 18-month hostile takeover battle for the company. Analysts have said they expect the trend of software mergers to pick up in the coming months. "It's harder for niche vendors to survive and grow, and we'll see more and more of those guys getting bought," Jim Shepherd, a business software analyst with AMR Research, told Reuters earlier this week.
