Leading cyber security company Symantec Corporation has acquired LifeLock — a leading provider of identity and fraud protection services — for $2.3 billion in a deal that is expected to close in the first quarter of 2017.
The acquisition 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, the company said in a statement.
“Consumer cybercrime has reached crisis levels. LifeLock with the combination of Norton will deliver comprehensive cyber defence for consumers,” said Greg Clark, Symantec’s CEO. “This acquisition marks the transformation of the consumer security industry from malware protection to the broader category of Digital Safety for consumers,” Clark added.
A third of US citizens and over 650 million people globally during the last one year became the victims of cybercrime, raising the security concerns among the consumers about digital safety. An estimated $10 billion market is growing in the high single digits, with a total addressable market of about 80 million people in the United States alone, Clark said.
“With the acquisition of LifeLock, Symantec adds a new dimension to its protection capabilities to address the expanding needs of the consumer marketplace,” noted Dan Schulman, Symantec’s Chairman of the Board.
“(Norton) had been declining with the declines in PC market share. This acquisition brings $660 million in revenue to the consumer business and returns it to longer sustainable growth,” Symantec Chief Executive Greg Clark told Reuters.