Veritas and Symantec make $13.5 billion deal Veritas and Symantec make $13.5 billion deal (December 24, 2004)

What started as acquisition talks last week led to a major announcement from Symantec and Mountain View-based Veritas. The two software companies have entered into an agreement to merge in an all-stock transaction.

The estimated $13.5 billion deal, scheduled to close in the second quarter of next year, represents one of the largest software company mergers ever and could create a one-stop shop for products that fight online security threats.

The New York Times reported that Symantec shareholders will own about 60 percent of the combined company once the merger is completed.

The new company, which will retain the Symantec name, will have approximately $5 billion in cash and 13,000 employees worldwide, according to the Times report.

Symantec, which is headquartered in Cupertino, produces Norton computer and security maintenance products, and Veritas makes data back-up and storage programs.

Representatives from Veritas, which has offices on Ellis Street, did not return phone calls for comment.

Carol Olson, president of the Mountain View Chamber of Commerce, said she doesn't know many details about the merger. She estimated that Veritas has about 200 employees in Mountain View.

"We certainly hope [the merger] won't change Veritas' presence here in Mountain View."

Olson said she didn't know if the company plans to lay off any of its employees.
-- Julie O'Shea and Kristine D. Dworkin

E-mail a friend a link to this story.