Software providers Symantec and Veritas Software have entered into an agreement to merge in an all-stock transaction valued at approximately $13.5 billion.
Under the agreement, which has been unanimously approved by both boards of directors, Veritas stock will be converted into Symantec stock at a fixed exchange rate of 1.1242 shares of Symantec common stock for each outstanding share of Veritas common stock.
Upon closing, Symantec shareholders will own approximately 60 percent and Veritas shareholders the remaining 40 percent of the combined company, which will operate under the Symantec name.
“Based on IDC data, the total market opportunity for the combined company today is approximately $35 billion and is expected to grow to $56 billion by 2007,” commented said Gary L. Bloom, Chairman, President and CEO of Veritas Software.
The transaction is expected to close in the second quarter of 2005 and is subject to customary closing conditions, including approval by the shareholders of both companies and regulatory approvals.