Sunday , 16 June 2019
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Symantec welcomes USD 500 mln, board member from Silver Lake

Symantec welcomes USD 500 mln, board member from Silver Lake

Symantec has received a USD 500 million investment from Silver Lake, with Ken Hao, a managing partner at the private equity firm, taking a seat on the company’s board, the Wall Street Journal reported.

With the money, Symantec will buy back more shares, cut costs and push forward on a transformation plan it launched in 2014. It also plans to return USD 5.5 billion in capital to shareholders in the coming year, also using proceeds from the recent sale of its Veritas data-storage and recovery business.

Activist hedge fund Elliott Management has aso been amassing a large stake in Symantec, becoming one of its largest shareholders, according to people familiar with the matter. Elliott, which has a long history of investing in technology companies, supports the Silver Lake deal and the other measures, the sources said.

Symantec said that the Silver Lake investment and USD 400 million in cost cuts will help it sharpen its focus on its core cybersecurity business. CEO Michael Brown said the work already done, including increasing sales of security software to businesses, has put the company on better footing for the last stages of its turnaround.

Silver Lake will make its investment by buying USD 500 million of notes due 2021 with an initial conversion price of USD 21 a share. Symantec expects the deal to close early next month.

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