Symantec to sell Veritas information management businessAugust 11, 2015 - 18:38 AMT PanARMENIAN.Net - Symantec will sell its Veritas information management business for $8 billion in cash with plans to funnel proceeds back into its main line of work, cybersecurity, and to buy back shares, the Associated Press reports. The Mountain View, California, said Tuesday, Aug 11, that the private equity investment firm The Carlyle Group and Singapore's sovereign wealth fund, GIC, will acquire the business in a deal expected to close Jan 1. Symantec Corp. anticipates receiving about $6.3 billion in net proceeds. It said the sale will give it a financial foundation to expand its security business and return capital to shareholders. The company also announced Tuesday that its board approved a $1.5 billion increase in its share buyback program, and it has decided to maintain its quarterly cash dividend at 15 cents per share. Companies often say share repurchases help shareholders, because theoretically they cut down on the total number of shares and thus boost earnings per share. But critics say that repurchases don't usually lower the number of shares outstanding because companies can issue more shares, and buybacks also divert money that might be spent on new infrastructure or hiring. Symantec said Tuesday its business sale provides "significant proceeds" to continue investing in the fast-growing market for security products and services. Symantec said last fall that it planned to separate its business into two independent companies to maximize their growth prospects. The security software maker also said Tuesday that it recorded adjusted earnings of 40 cents per share in its fiscal first quarter on $1.5 billion in revenue, according to the AP. Both figures missed Wall Street expectations, where analysts expected, on average, earnings of 43 cents per share on $1.52 billion in revenue, according to Zacks Investment Research. Shares of Symantec climbed 2.5 percent, or 58 cents, to $23.49 before markets opened Tuesday. The stock had fallen about 11 percent so far this year, as of Monday's close. The Standard & Poor's 500 index, in contrast, has climbed about 2 percent. Related links: Top stories Yerevan will host the 2024 edition of the World Congress On Information Technology (WCIT). Rustam Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues. Krisp’s smart noise suppression tech silences ambient sounds and isolates your voice for calls. Gurgen Khachatryan claimed that the "illegalities have been taking place in 2020." Partner news Most popular in the section | Russia provides info about arrested Armenian ex-MP Russian law enforcement agencies have provided information about the arrest of Tigran Urikhanyan. Lemkin Institue slams Pashinyan's “cryptic engagement with Genocide denial” The Lemkin Institute is alarmed over Pashinyan’s statements “questioning Armenia's legal basis to pursue justice against Turkey”. 41 detained as antigovernment protests continue in Yerevan 41 people were detained in Yerevan as people demanding Pashinian’s resignation stage campaigns of civil disobedience. Armenia votes for UN resolution granting Palestine new rights The U.N. General Assembly voted by a wide margin on May 10 to grant new “rights and privileges” to Palestine. |