Symantec to buy VeriSign's security unit for $1.3B, reports say

19.05.2010
Security vendor Symantec Corp. is reported to be close to buying Internet infrastructure services vendor VeriSign Inc.'s security business for $1.3 billion.

The quoted unidentified sources who are said to be close to the deal as saying it would give Symantec control of VeriSign's $410 million authentication business, which provides a range of encryption technologies and services.

A late Tuesday also quoted an unnamed source as saying that VeriSign had been shopping for a buyer for its security unit recently.

Meanwhile, other news reports fuled the speculation by adding that VeriSign CFO Brian Robins had abruptly pulled out of a JP Morgan investors conference on Tuesday afternoon.

News of the possible deal pushed VeriSign's shares up by $1.39 or 5.18% to $28.23 Tuesday afternoon. But with the expected deal not announced until late Tuesday, VeriSign's shares yielded back some of that gain in after hours trading. Shares of Symantec meanwhile were down 2.03% to $15.95 on news of the rumored deal.

A spokesman for Symantec said the company would not comment on rumors and speculations. A VeriSign spokeswoman said also the company would not comment.