Shares of identity theft and fraud protection services provider LifeLock (NYSE:LOCK) jumped on Monday after Symantec (NASDAQ:NLOK) agreed to acquire the company for $2.3 billion, including debt. The deal will create the world's largest digital safety platform, according to Symantec. LifeLock stock was up about 15% at noon EST, while shares of Symantec had risen about 4.5%.
Symantec will pay $24 per share for LifeLock, a 16% premium to the stock's closing price on Nov. 18. The deal is expected to close during the first calendar quarter of 2017, pending LifeLock shareholder approval.
Symantec will combine its Norton antivirus product with LifeLock, creating a comprehensive security solution for consumers. "As we all know, consumer cybercrime has reached crisis levels. LifeLock is a leading provider of identity and fraud protection services, with over 4.4 million highly satisfied members and growing. With the combination of Norton and LifeLock, we will be able to deliver comprehensive cyber defense for consumers," said Symantec CEO Greg Clark.
Symantec will fund the acquisition with cash on its balance sheet and $750 million of new debt. The company has also increased its share repurchase authorization to $1.3 billion, up from a previous level of $800 million. Symantec expects the deal to have no material impact on its fiscal 2017 results.
After considering various options, LifeLock decided that being acquired by Symantec was the best course of action. "After a thorough review of a broad range of alternatives, our board of directors unanimously concluded that Symantec is the ideal strategic partner for LifeLock and offers our shareholders a significant premium for their investment, at closing," said LifeLock CEO Hilary Schneider.