GIC supports Carlyle's $8b Veritas acquisition
Singapore's GIC Private has joined The Carlyle Group in its $8 billion acquisition of Silicon Valley-based Veritas, the information management unit of US tech giant Symantec.
The all-cash deal - which also includes several undisclosed co-investors joining the Carlyle-led consortium - is expected to close in January 2016 and will generate Symantec proceeds of $6.3 billion. Tech industry veteran Bill Coleman and Carlyle operating executive Bill Krause will become CEO and Chairman, respectively, following the carve-out.
Veritas, founded in 1983, accounts for around 40% of Symantec's revenue and claims to be a leading provider of storage and server management software solutions. Its information management portfolio has four primary product segments: backup and recovery, integrated appliances, information intelligence and information availability. The company says more than 86% of the Fortune 500 companies use Veritas products and services.
"Veritas is a market innovator with global scale, an iconic brand, and significant growth potential," said Patrick McCarter, a managing director based in Carlyle's Silicon Valley office, in a statement. "Bill Coleman is a proven leader whose strategic vision and strong execution skills will leverage Veritas' new-found position as a private, stand-alone company to grow the firm and provide customers an integrated information management solution."
Symantec - which bought Veritas for $13.5 billion in 2005 - will use funds generated by the sale to shift focus onto its core security software business. The company has also announced a $1.5 billion increase to its existing share repurchase program, bringing the total to $2.6 billion, with $2 billion expected to be returned to shareholders in the 18 months following the close of the deal. Symantec will maintain its quarterly cash dividend of $0.15 per common share.
BofA Merrill Lynch, Morgan Stanley & Co. LLC and UBS Investment Bank are serving as financial advisors to Carlyle and GIC.
More on Buyouts
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.