Computer security company, Symantec has made an announcement that its Veritas division has been sold off to private equity firm The Carlyle Group, for $8 billion in cash. The move is being made so that the company can focus solely on its security business.
The news comes in succession of the revelation that the company was splitting into two separate publicly traded companies- Symentec and Veritas, handling security and serving as a storage vendor respectively. However, the split could not be completed officially. Nevertheless, the company received a good return which gave them a fillip to move forward with better security technologies.
The company is now shifting to the cloud and employing subscription model for monetization, reports Techcrunch.
“The sale allows Symantec to double down on their core by buying them time to deal with the cloud revenue conversion,” R Ray Wang, Founder at Constellation Research told TechCrunch.
The freshly gained $8 billion, gives the company time to refurnish and bolster its sales and marketing which is a mandate to move to a cloud model, as explained by Wang.
The purpose of selling Veritas off has been that the company never really had a sense of how to take advantage of an information management asset like Veritas, which explains why it was spinning it out as a separate company, stated Wang.
As of Carlyle, the company stated that it is committed to helping Veritas to eventually become a successful independent company. “We are wholly behind growing this business and growing a company that we hope to take public in the future,” Patrick McCarter, a Carlyle Managing Director said.