Symantec, the world leader in providing security, systems management and storage for secure exchange of information online, has recently announced that it will acquire VeriSign’s authentication business. This acquisition will allow Symantec’s customers integrate identity based security into their web applications.
This acquisition came as no surprise since the company has been looking out for interesting business opportunities for a while now! Symantec has been growing at an exponential rate and looks good to become a one stop destination for its clients. The company is looking to expand its operations in a big way and this acquisition bears testimony to this fact. In late April, Symantec announced their plans to buy privately held PGP and GuardianEdge for a total amount of $370 Million. The purchase will substantially improve Symantec’s standing in the data encryption market.
The purchase of VeriSign, at $1.28 Billion is surely a feather in Symantec’s cap. The deal includes identity protection and authentication services along with secure sockets layer (SSL) certificate services and public key infrastructure (PKI) services. Symantec will also get a majority stake in VeriSign Japan. With this deal, Symantec plans to integrate VeriSign’s cloud based authentication services with its security software, which will provide protection to web servers from hackers. VeriSign’s “check mark” logo is also part of the acquisition. This logo is used by commercial sites to protect their visitor’s personal information from external sources. Symantec claims that the trademark is used by more than 90,000 companies in 160 countries!
The web security domain has been a topic of much discussion and the timing of Symantec’s move couldn’t have been more perfect. They have constantly been working towards building a better reputation with their customers, employees and partners. However, the needs of the industry are changing and the demand is shifting towards mobile devices. Enrique Salem, President and Chief Executive of Symantec recently reaffirmed the faith of its patrons by stating, “With the combined products and reach from Symantec and VeriSign, we are poised to drive the adoption of identity security as the means to provide simple and secure access to anything from anywhere, to prevent identity fraud and to make online experiences more user-friendly and hassle-free”. This acquisition will surely be a big step towards Symantec’s dream of becoming the world’s most trusted source for protecting information and identities online.
After the release of Norton 360 in February, Symntec has been on a high with the quarter ending profitably, a 3 % increase in revenue has been reported taking the total to $1.5 billion! The future, they believe, has a lot in store for them with the server and user authentication segment expected to hit $1.7 billion by 2013. The market looks good and Symantec is ready to capitalize on any opportunity coming its way!
Symantec has come a long way since its inception in 1982 and is currently among the most reputed software companies. It is the largest maker of computer security software and has its footprint in more than one billion computer systems worldwide. Its acquisition of VeriSign is surely a smart, calculated step towards giving them a stronger hold in the world market.