Symantec to break up into two companies

Symantec is following HP’s lead with a plan to separate into two publicly traded companies.

The Symantec board has universally approved a plan to break up into a stand-alone security business as well as one focused on information management (IM).

Symantec’s security business will aim to deliver a unified security platform that integrates threat information from Symantec and Norton products. The company will aim to integrate this information into a big data platform.

The security business generated around $4.8 billion (US$4.2 billion) in revenue in FY14, and Symantec said the separated business will have twice the market share of its leading competitor.

The IM company will encompass appliance and backup products, and will aim to develop products that reduce the TCO of owning, storing and managing business data. The business generated US$2.5 billion in revenue last financial year.

Symantec’s new CEO Michael Brown will lead up the the security business, while former Quantum CEO John Gannon will take the reins at the information management business.

“As the security and storage industries continue to change at an accelerating pace, Symantec’s security and IM businesses each face unique market opportunities and challenges,” Brown commented.

“It has become clear that winning in both security and information management requires distinct strategies, focused investments and go-to market innovation. Separating Symantec into two, independent publicly traded companies will provide each business the flexibility and focus to drive growth and enhance shareholder value.”

Brown was appointed permanent CEO of Symantec last month after having served as acting CEO since March, when then-chief executive Steve Bennett was fired. At the time, he said he would announce his strategic plan for the company by the end of this month.

Symantec’s announcement comes a week after HP revealed plans to separate into two public companies - an enterprise business and a printers and personal systems group. eBay also plans a break-up.

Image courtesy of Martin McKeay under CC