Greg Clark, Blue Coat Chief Executive, is set to take that role at Symantec after the deal closes, which is expected to occur before October, the companies plan to announce.
While Symantec is specialised in antivirus software that runs on personal computers, Blue Coat’s domain is the World Wide Web. Blue Coat is also a seller of security services delivered over the internet, also known as cloud computing.
Private-equity company Bain Capital, which controls Blue Coat, will invest USD 750 million of the proceeds back into the combined company in the form of debt convertible into equity, while Silver Lake will invest USD 500 million in convertible debt on top of USD 500 million it already agreed to put into Symantec this year.
The combined company would have some USD 4.4 billion in fiscal-2016 revenue, nearly two-thirds from corporate security. Symantec ultimately expects USD 150 million of cost savings from the deal, on top of a USD 400 million expense-reduction drive the company had already announced.
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