News
Symantec and Veritas Owners Confirm Merger
In overwhelmingly positive votes, the shareholders of both Symantec and Veritas have confirmed the merger of the anti-virus giant with the utility computing dynamo. The deal is expected to close by the end of the week, according to a statement by the two firms.
Symantec and Veritas announced their intent to merge six months ago in mid-December. The overall cost of the deal at that time was estimated at $13.5 billion in Symantec stock – giving Symantec shareholders ownership of approximately 60 percent of the combined company, with Veritas shareholders owning the other 40 percent.
Mountain View, Calif.-based Veritas had calendar 2004 revenues of $2.04 billion. Cupertino, Calif.-based Symantec – whose fourth quarter ended April 1 -- had fiscal 2005 revenues of $2.58 billion.
Although the outcome was never in doubt, given the previous unanimous votes by both companies’ boards, the pair of votes brings the merger to a conclusion.
“Of the 76 percent of outstanding Symantec shares that were voted, nearly 95 percent were cast in favor of the merger . . . . [while] of the 73 percent of outstanding Veritas shares that were voted, 98 percent were cast in favor of the merger,” the companies’ statement said.
The combined company will operate under the Symantec name. Symantec’s chairman and CEO, John W. Thompson, will continue to hold those jobs. Meanwhile, Gary L. Bloom, chairman and president of Veritas, will become vice-chairman and president of the merged company. The board directors of the new, combined company will include six members of Symantec's current board and four from Veritas' current board, for a total of ten members.
About the Author
Stuart J. Johnston has covered technology, especially Microsoft, since February 1988 for InfoWorld, Computerworld, Information Week, and PC World, as well as for Enterprise Developer, XML & Web Services, and .NET magazines.