Carlyle Group LP has agreed to acquire Veritas from Symantec Corp. for $8 billion. The leveraged buyout is the largest in the United States for 2015. The biggest deal of the year prior to the acquisition was the $5.3 billion LBO of software company Informatica Corp.
The Carlyle group will use equity from its buyout fund and GIC to pay for a large chunk of the deal. The transaction is expected to be completed before the end of the year.
For the quarter ended in June, Symantec said sales fell 14 percent to $1.5 billion, missing the $1.53 billion average estimate of analysts surveyed by Bloomberg. The company issued an adjusted profit of 40 cents a share compared with the 43-cent average expectation.
Following news of the LBO, Symantec shares fell 2.4 percent to $22.35. The company is down 13 percent on the year.
Veritas was purchased in 2005 for $13 billion.
Carlyle manages $193 billion in private equity, real estate, credit and hedge fund assets. The company is an expert in LBO’s, making the Veritas buy a good fit for the organization, especially as cloud services continue to grow in popularity and importance for many companies big and small.