New avenue of growth
So far in this series, we’ve discussed how LifeLock’s acquisition will revive revenue growth in Symantec’s (SYMC) Norton Suite and Consumer Security segment. As LifeLock operates in the identity theft protection space, there is no overlap in Symantec’s and its portfolio. Therefore, it would provide a significant cross-selling opportunity to Symantec, which is keen on strengthening its position in the cybersecurity space.
A steady rise in identity theft
We know that rapid innovation and developments in big data, the cloud, and mobile computing are transforming the information technology (or IT) sector. The following factors have enabled consumers and employees to access confidential data and information outside original, secure data centers and firewalls:
- the SMAC (social media, mobile, analytics, and cloud) revolution
- the BYOD (bring-your-own-device) concept
- growth in the mobile workforce
- increasing adoption of electronic commerce (e-commerce) and mobile commerce (m-commerce)
These factors have led to a significant increase in information and identity theft. With the increase in cybercrime, there is a greater need for cybersecurity.
According to IBISWorld, the top two companies in the identity theft protection services industry account for about 33.5% of the overall industry revenue (estimated to be worth $3 billion in the United States), indicating that there is a low level of market share concentration in this industry. LifeLock is one of those two companies. Through this acquisition, Symantec, which is a significant player in the rapidly growing cybersecurity space, will add a brand known for its expertise, as well as a new avenue for growth.