Says will allow each entity to maximize its respective growth opportunities and drive greater shareholder value
Symantec’s Board of Directors has unanimously approved a plan to separate the company into two, independent publicly traded companies: one business focused on security and one business focused on information management (“IM”).
Symantec’s decision to pursue a separation follows an extensive business review of the company’s strategy and operational structure announced the press release. Creating two standalone businesses will allow each entity to maximize its respective growth opportunities and drive greater shareholder value.
“As the security and storage industries continue to change at an accelerating pace, Symantec’s security and IM businesses each face unique market opportunities and challenges. It has become clear that winning in both security and information management requires distinct strategies, focused investments and go-¬-to market innovation,” said Michael A. Brown, Symantec president and chief executive officer. “Separating Symantec into two, independent publicly traded companies will provide each business the flexibility and focus to drive growth and enhance shareholder value.”
The separation will allow each company to :
Focus on its unique growth opportunities, R&D investments, and go-¬-to-¬-market capabilities
Reduce operational complexity
Enhance strategic flexibility, pursue partnerships, and develop independent M&A strategies
Set distinct capital allocation policies
Brown continued, “Taking this decisive step will enable each business to maximize its potential. Both businesses will have substantial operational and financial scale to thrive.”
Michael A. Brown will be the President and CEO of Symantec and Thomas Seifert will continue to serve as CFO. John Gannon will be General Manager of the new information management business and Don Rath will be its acting CFO.
