Symantec Splits Into Two Traded Companies To Create More Focused Co
Taking a cue from Hewlett-Packard and eBay, security giant Symantec just announced that it will divide itself into two publicly traded companies. The Mountain View-based Symantec said in a statement Thursday that its splitting into two publicly traded companies.
One of the companies will focus on security business, which generated revenues of $4.2 billion in fiscal year 2014, while the other will take on what it calls the “Information Management” business, which deals with storing and protecting documents (which include backup and recovery, archiving, storage software, information availability and eDiscovery). The company made the tough decision after an extensive business review and analysis.
Security giant Symantec, unlike the rest of the cybersecurity market, has been struggling in the market, it seen revenue growth turn negative in the recent quarters. The struggle is partly due to concerns about the falling sales of PCs, affecting demand for its software, which often comes bundled with new PC. In March the company has appointed board member Michael Brown as interim president and CEO, and last month made the CEO title official. Brown replaced former CEO and president Steve Bennet, the second CEO to go in less than two years. Brown joined Symantec's board in 2005 when the company acquired data-storage maker Veritas Software in a massive $13.5 billion stock transaction, that strategic acquisition of Veritas Software is what moved Symantec into the information management business.
Under the split, CEO Michael Brown will become CEO of the security company while John Gannon will lead the new information management business, but Symantec would not calling him CEO, right now John Gannon's title will be general manager of the new information management business. John Gannon, who joined Symantec in August 2012, will be the general manager of the new information management business and Symantec's vice president Don Rath will be its acting CFO (Chief Financial Officer). Gannon was formerly President and COO (Chief Operating Officer) of storage firm Quantum, and previously led HP's PC business.
Symantec isn't the only company in the tech world that sees benefits in splitting itself to create a more-focused company and to reduce operational complexity. US-based PC maker Hewlett-Packard announced Monday that it was splitting itself into two publicly traded companies - HP Enterprise Company (which makes servers, storage and networking gears) and HP (the PC/printer company).
Symantec is a trusted leader in security, storage and system management solutions, it has an overall market share-twice the nearest competitor. It sees more, analyzes more and tracks more about security threats than any other security software company in the world. The company's information management business is a market leader, serving about 75 percent of the Fortune's 500 top companies.
The Security Business
Symantec's security business generated revenue of $4.2 billion in fiscal year 2014. This include:
- Consumer and enterprise endpoint security
- Endpoint management
- Encryption solutions
- Mobile security solutions
- SSL (Secure Socket Layer) Certificates
- User authentication
- Data loss prevention technologies
- Hosted security solutions
- Managed security services.
The Information Management Business
Symantec's information management business generated revenue of $2.5 billion in fiscal year 2014. This include:
- Backup and recovery solutions
- Storage management
- Information availability solutions.
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