Symantec, the Mountain View, California-based company responsible for the popular Norton Antivirus software, is to split into two separate companies, with one company focusing on cloud-based storage and information management, and the other security. The news comes in the wake of a number of major companies, including eBay and Hewlett-Packard (HP), splitting operations into two separate entities. The transition is expected at the end of 2015 and it is also expected that John Gannon will become the General Manager of the new storage and information management division. The company's shares rose 2% on the news.
With business paradigms shifting and fewer people buying software directly, Symantec has been struggling to cope of late. The move towards the cloud has meant fewer people purchasing PCs, and as a result, Symantec's solutions. The company's operating income fell around 20% in the last financial year, while its revenue fell to $6.7 billion. Splitting the company would make each company a more attractive prospect for acquisition, with companies like NetApp and Cisco potential buyers.
“As the security and storage industries continue to change at an accelerating pace, Symantec’s security and IM businesses each face unique market opportunities and challenges," explained the CEO of Symantec, Michael Brown. "It has become clear that winning in both security and information management requires distinct strategies, focused investments and go-to market innovation,” “Separating Symantec into two, independent publicly traded companies will provide each business the flexibility and focus to drive growth and enhance shareholder value”.
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