Security in numbers

6 Nov 2018 By Robert Cyran Follow @rob_cyran

A possible buyout of the troubled $14 bln software firm by private-equity shop Thoma Bravo checks many boxes. The valuation isn’t stretched, cost cuts are possible, and cybersecurity is booming. Symantec’s history of internal troubles and rising competition could be potholes.

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Private-equity firm Thoma Bravo has made an approach to information-security firm Symantec, according to sources cited by Reuters on Nov. 6.

Symantec shares rose 13 percent by 3 p.m. EST on Nov. 6 to $22.61, equivalent to a market capitalization of just over $14 billion. The company had $2.6 billion of net debt as of the end of its last financial quarter, according to I/B/E/S data from Refinitiv.

Private-equity firms Bain Capital and Silver Lake Partners each own convertible debt in Symantec and have a representative on the board. Activist investor Starboard Value has three representatives as a result of a settlement with the company in September.

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