Symantec is selling off its Website Security business and related public key infrastructure (PKI) solutions to DigiCert in a deal worth around $1.2 billion (US$950 million).
Under the terms of the agreement, Symantec will receive the $1.2 billion in upfront cash proceeds, and approximately a 30 per cent stake in the common stock equity of the DigiCert business at the deal’s close.
The US-headquartered DigiCert is an identity, authentication, and encryption solutions provider for the web and internet of things (IoT) devices.
The addition of Symantec’s website security solutions to DigiCert’s offerings is expected to provide customers with an enhanced technology platform and market-leading innovations.
The deal is set to see DigiCert gain capabilities to take advantage of growth opportunities in IoT and bring new approaches to the Secure Sockets Layer (SSL) market.
DigiCert said it will continue to operate from its headquarters in Lehi, Utah and will employ over 1,000 professionals.
For Symantec, the sale of the Website Security and related PKI solutions business to DigiCert is expected to let the company sharpen its enterprise focus on delivering unparalleled protection for the cloud generation through its Integrated Cyber Defense Platform.
“As our recently announced deals with Fireglass and Skycure demonstrate, we are accelerating the pace of innovation we bring to market through a combination of acquisitions as well as development from the ground up,” Symantec CEO, Greg Clark, said.
“I’m thrilled that our customers will benefit from a seamless transition to DigiCert, a company that is solely focused on delivering leading identity and encryption solutions. Symantec is deeply committed to the success of this transition for our customers,” he said.
DigiCert will continue to be led by its CEO, John Merrill.
Given the shared commitment to customer service, existing Symantec Website Security customers will be able to transition to a new platform that meets all industry standards and browser requirements and provides the foundation for future innovation in the Certificate Authority space for the benefit of customers.
The transaction, which has been unanimously approved by the Symantec Board of Directors, is expected to be completed in the third quarter of fiscal 2018, subject to the satisfaction of customary closing conditions.