Technology security firm Symantec has announced that it will acquire LifeLock, an identity protection services firm, for $2.3 billion, according to a report on industry publication
CIO.com.
The report further said that the deal is expected to result in what is said to be the world’s largest consumer security business with combined annual revenues of over $2 billion.
There is growing concern in the consumer market over security as cybercrime becomes more rampant and sophisticated, resulting in more clients falling prey to malicious schemes. The companies estimate the total addressable market to be worth $10 billion, comprised of 80 million individuals. Growth is said to be in the range of the upper limit of single digits.
The boards of both companies have approved the acquisition, but it will still be subject to regulatory approval. Symantec will finance the deal with $750 million in debt papers, and off the balance sheet.
LifeLock has more than 4 million customers.
Meanwhile, Symantec forecast in a guidance released this month that income from consumer demand is expected to be in the vicinity of $400 million out of total revenues of $1 billion.
