Symantec To Buy LifeLock For $24/Shr - Quick Facts

(RTTNews) - Symantec Corp. (SYMC) announced that it has agreed to buy LifeLock, Inc. (LOCK) for $24 per share or $2.3 billion in enterprise value. The deal, which was approved by the boards of directors of both companies, is expected to close in the first calendar quarter of 2017.

Symantec expects to finance the transaction with cash on the balance sheet and $750 million of new debt. Symantec expects the transaction to be accretive to non-GAAP earnings per share in fiscal year 2019.

Symantec expects the transaction to have no impact to its quarter ending December 30, 2016 and also to its fiscal year 2017 financial results.

Symantec said its acquisition of LifeLock will create the world's largest consumer security business with over $2.3 billion in annual revenue based on last fiscal year revenues for both companies.

By offering each of the company's respective customer bases a broader digital safety solution, Symantec expects to achieve additional revenue upside through higher ASPs and improved retention rates.

Further, Symantec's board increased its share repurchase authorization from approximately $800 million to $1.3 billion, with up to $500 million in repurchases targeted by the end of fiscal 2017.

Looking ahead, the company is reaffirming its prior fiscal year 2017 financial guidance at this time: non-GAAP revenue of $4.040 - $4.120 billion; non-GAAP operating margin of 27-29%; and non-GAAP earnings per share of $1.12-$1.18.

The company is also reaffirming its prior fiscal year 2018 non-GAAP earnings per share guidance of $1.70-$1.80.

Citi and J.P. Morgan Securities, LLC are serving as co-lead financial advisors to Symantec's Board of Directors.