Wednesday, October 17, 2007

SeekingAlpha: Symantec To Buy Private “Data Leakage Prevention” Company

"Symantec (SYMC) is going to buy privately held “data leakage prevention” company Vontu for between $300 million and $350 million, according to a story late last week by Infoworld.
In a note Tuesday, UBS software analyst Heather Bellini wrote that Vontu had about $30 million in revenue in 2006. She says any deal likely would be funded with Symantec’s line of credit or “more likely than not via a convert.”
Bellini points out that Symantec CEO John Thompson has said the company could take on another $2.5 billion to $3 billion in debt; Bellini says the proceeds from any large debt offering would likely be split between M&A and share repurchases.
Bellini has a Buy rating and $26 price target on Symantec."

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