Computer security software maker Symantec to buy LifeLock for $2.3 bn

Computer security software maker Symantec Corp yesterday struck a deal to buy identity theft protection services company LifeLock Inc for $2.3 billion.

Symantec has offered to pay $24 a share, a 16 per cent premium to LifeLock's Friday closing price of $20.75.

Symantec indents to finance the deal with cash on balance sheet and $750 million of new debt.

The deal, which was approved by the boards of directors of both companies, is expected to close in the first calendar quarter of 2017.

The deal will combine Symantec's security software Norton and LifeLock's Standard, Advantage, Ultimate Plus and Junior monitoring services.

The merger 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.

''People's identity and data are prime targets of cybercrime.  The security industry must step up and defend through innovation and vigilance,'' said Dan Schulman, Symantec's chairman. ''With the acquisition of LifeLock, Symantec adds a new dimension to its protection capabilities to address the expanding needs of the consumer marketplace.''

''As we all know, consumer cybercrime has reached crisis levels. LifeLock is a leading provider of identity and fraud protection services, with over 4.4 million highly-satisfied members and growing.  With the combination of Norton and LifeLock, we will be able to deliver comprehensive cyber defense 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,'' he added.

Founded in 2005, LifeLock is an identity theft protection company based in Tempe, Arizona.

The company offers identity theft protection system, which is intended to detect fraudulent applications for various credit and non-credit related services.

Standard offers identity theft detection and alerts within its network, lost wallet protection, address change verification, black market website surveillance and reduced pre-approved credit card offers, while its Advantage contains everything in the Standard plan plus fictitious identity monitoring, court record scanning, data breach notifications, credit card, checking, and savings account activity alerts, and an online annual credit score and report through TransUnion.

LifeLock Ultimate includes bank account takeover alerts within its network, enhanced credit application alerts and online credit reports and scores on top of the Standard and Advantage features. Its Junior protection provides identity theft detection and alerts, credit file verification, black market website surveillance and file sharing network searches.

LifeLock provides a $1 million guarantee in the event of identity theft, where it will spend up to $1,000,000 on legal and other fees in restoring a customer's identity.