Symantec snapping up Blue Coat amid frenzy sweeping the US tech industry
Security tech firm acquiring threat-blocking service blue coat systems during what industry is calling the 'most intense M&A season' they've ever seen
The computer-security company Symantec is buying Blue Coat Systems for about US$4.65 billion in cash.
Blue Coat CEO Greg Clark will become chief executive of Symantec and join the Symantec Board once the deal has closed.
Business Insider previously reported that Blue Coat was close to filing for an IPO. The company had been running a so-called dual track process, running a sales process while preparing for an IPO.
“If you look at what we’ve paid, it’s well within the range of what an IPO valuation would have been,” Symantec CFO Thomas Seifert told The Wall Street Journal. “With this IPO path in mind, we think we paid fair value for what we’re receiving.”
Blue Coat's current owner, Bain Capital, will re-invest US$750 million into the newly merged company. The private equity firm Silver Lake, which had already agreed to invest US$500 million in Symantec this year, will double its investment to US$1 billion.
JPMorgan is the lead advisor to Symantec, while Barclays, Bank of America Merrill Lynch, Citi, and Wells Fargo are also advising and providing debt financing to the company.
Goldman Sachs is Blue Coat's lead adviser, while Morgan Stanley and Credit Suisse are also acting as advisers.