Symantec [SYMC] and DigiCert Inc. on Wednesday said they have agreed to DigiCert acquiring Symantec's website security and PKI solutions for $950 million in cash and a 30 percent stake in DigiCert, a deal that expands its talent and capabilities in website security.
Utah-based DigiCert said the acquisition will allow it to take advantage of growth opportunities in the Internet of Things bring new approaches to the secure socket layer market.
For Symantec, the divestiture will help it focus on its cloud protection capabilities.
"Transitioning our Website Security and related PKI solutions to DigiCert allows us to sharpen our enterprise focus on delivering unparalleled protection for the cloud generation through Symantec's Cyber Defense Platform," Greg Clark, CEO of Symantec, said in a statement. He said DigiCert will offer its customers "a modern website PKI platform."
The deal is expected to be completed in the last quarter of 2018.
Symantec's financial advisor on the deal is J.P. Morgan. DigiCert is being advised by UBS Investment Bank, Credit Suisse, and Jefferies. DigiCert is backed by the private equity firm Thoma Bravo.
Separately, Symantec reported first quarter financial results with sales up 33 percent to $1.2 billion and a net loss of $133 million, 22 cents earnings per share. For the year the company expects about $5 billion in sales and to eke out a profit.