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Symantec to Buy VeriSign Authentication Business in $1.28 Billion Deal
Category : General 20 May 2010 01:34 AM | Industry News
After a day of rumors, Symantec confirmed plans to buy VeriSign's identity and authentication security business and outlined its strategy. The deal, expected to close later this year, follows other moves by VerSign to trim down its security business. Twenty-four hours after acquisition rumors hit the press, Symantec announced it has signed a definitive agreement to buy VeriSigns identity and authentication business.
The deal includes the secure socket layer, certificate services, public key infrastructure, VeriSign Trust Services, and VeriSign Identity Protection Service. All of those technologies are aimed at making sure people are who they say they are online.
Symantec, best known for its popular Norton antivirus software, has struck several deals of its own to expand its business. Last month, it agreed to buy the PGP Corporation, another provider of Internet encryption services, for $300 million.
News of the possible deal pushed VeriSign's shares up by $1.39 or 5.18% to $28.23 Tuesday afternoon. But with the expected deal not announced until late Tuesday, VeriSign's shares yielded back some of that gain in after hours trading. Shares of Symantec meanwhile were down 2.03% to $15.95 on news of the rumored deal.
The deal gave AT&T control of a VeriSign business unit focused on security and ID management related consulting services for Fortune 500 companies.
At that time, VeriSign CEO Mark Mclaughlin was quoted as saying that the sale was in keeping with VeriSign's goals to divest itself of certain business units.