What’s driving SYMC’s acquisitions?
To boost its security service capabilities and to counter competition, Symantec (SYMC) has accelerated its acquisitions in the last two years. Between fiscal 2017 and fiscal 2018, Symantec invested ~$7.1 billion in acquisitions compared with only $60.0 million spent in the previous three years. This indicates that Symantec has started stepping up its inorganic expansion goals.
In fiscal 2017, Symantec made two large acquisitions—Blue Coat Systems and LifeLock. The acquisition of Blue Coat Systems enhanced the company’s enterprise web security services. This deal helped the company generate cost synergies of more than $300.0 million.
LifeLock, which deals with identity theft protection services, is an important acquisition for Symantec, as smartphone users store increasing amounts of personal data on their devices.
These LifeLock products prevent newly downloaded software to access users’ personal information from their devices. Following these two important acquisitions, Symantec’s Consumer Digital Security segment witnessed strong revenue growth.
In the graph above, we can see the acquisition trend of Symantec in the last five years. During this period, the company spent ~$7.2 billion, with its biggest investment occurring during the last two years.
In fiscal 2018, Symantec bought Fireglass, which protects enterprises against malware and phishing threats either on-premises or in the cloud. This capability enhanced Symantec’s Secure Web Gateway and Email Protection services.
In fiscal 2018, Symantec bought Skycure, which protects mobile devices running on Google’s (GOOGL) Android and Apple’s iOS platforms from malware attacks.
The growing popularity of mobile devices has encouraged the BYOD (bring your own device) concept in numerous enterprises. So, the Skycure deal may boost Symantec’s mobile security products, thereby mitigating softness in the personal computer space.