Symantec to Buy Altiris for $830 Million

Published: February 6, 2007

by Alex Woodie

Symantec plans to buy Altiris, a developer of configuration management tools, in a $830 million stock transaction, the companies announced this week.

Altiris is a publicly traded company that sells a variety of tools that can loosely be grouped under the term "configuration management." Its products help automate tasks that IT professionals must undertake to keep the systems running, including deploying new products, performing device discovery, keeping inventory of IT assets, applying security patches, tracking changes and customizations over time, migrating IT assets, and tracking compliance with license agreements. The software supports Windows, Linux, Unix, and Macintosh clients and server operating systems, as well as networking gear.

Symantec said Altiris' software will complement its existing security offerings, and specifically will bolster its "endpoint" management. "By combining the endpoint management solutions from Altiris with the security expertise from Symantec, we believe we can offer customers a more comprehensive solution to protect and manage the millions of connected devices that make up the fabric of today's global IT infrastructure," says John W. Thompson, chairman and CEO of Symantec.

Altiris, which is based in Lindon, Utah, reported $187.6 million in revenues and $3.25 million in net income for the fiscal year ended December 31, 2005, the most recent whole-year figure available. Over the last three quarters, the company has enjoyed sales of $168.9 million, and was on pace to hit $220 million for fiscal year 2006. Over the last five years, the company reports a compound annual growth rate of close to 80 percent.

Symantec has agreed to pay $33 per share for all outstanding shares of Altiris' common stock. That equates to 22 percent premium on Altiris stocks' closing value last Friday.

While much of the acquisition activity in the IT sector would seem to have the approval from Wall Street, this acquisition seems to be getting the cold shoulder from the Street. In particular, traders are worried that Symantec will have too much on its plate now integrating the Altiris line, especially in light of Symantec's poor fourth-quarter results and the steps the company has made to cut costs.

The acquisition is subject to approval from Alitris shareholders and government regulators, and is expected to close in the second calendar quarter of 2007. The deal includes a $37.5 million termination fee that Alitris must pay if the acquisition does not go through.

RELATED STORIES

Dell and Symantec Launch Windows Patch Management Tools

Altiris Buys Pedestal Software for $65 Million

                     Post this story to del.icio.us
               Post this story to Digg
    Post this story to Slashdot