A 16% premium

Symantec (SYMC) is buying identity theft protection company LifeLock (LOCK) for $2.3 billion. The deal values LifeLock at $24 per share, suggesting that Symantec is paying a 16% premium to LOCK’s closing price as of November 18, 2016.

So what does LifeLock bring to the table? It’s a business that’s already generating revenue and has bright growth prospects. LifeLock reported EPS (earnings per share) of $0.34 on revenue of $170.3 million in 3Q16. The company has guided for revenue of $172 million–$174 million for 4Q16. In this way, LifeLock should give an immediate boost to Symantec’s top line. Symantec generated revenue of $979 million in its fiscal 2Q17.

What’s Symantec Getting from Its LifeLock Acquisition?

LifeLock also fits in with Symantec’s goal of expanding its computer security business beyond traditional antivirus software. LifeLock is a specialist in identity theft protection, boasting more than 4.4 million customers.

Growing demand for data protection

Computer security has emerged as a major concern for business executives. As e-commerce penetration deepens in many parts of the world and many companies move their data online to embrace cloud computing, demand for data security has risen. The uptick in the demand for cybersecurity solutions is underpinned by the recent high-profile data breaches that have affected companies such as Sony (SNE).

With LifeLock in its portfolio, Symantec stands a better chance of rapidly growing its security business and taking advantage of increased cybersecurity spending. Symantec plans to integrate LifeLock into its Norton unit.

LifeLock is the latest security asset Symantec is adding to its portfolio. Earlier this year, the company acquired Blue Coat Systems for $4.7 billion. At the beginning of the year, Symantec sold its data storage business, Veritas, to Carlyle Group (CG) for $7.4 billion. The sale was a tactical move that saw Symantec cut its exposure to a sector that was facing disruptions from cloud services sold by companies such as Amazon (AMZN) and Microsoft (MSFT).

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