Symantec spends $370 mln on encryption companies

* To pay $300 mln for PGP Corp, $70 mln for GuardianEdge

* Will hurt non-GAAP EPS by 2 cents in current fiscal year

* Will add to earnings in subsequent fiscal year

BOSTON, April 29 (BestGrowthStock) – Symantec Corp (SYMC.O: ), the
world’s biggest maker of computer security software, has agreed
to pay $370 million to buy two makers of technology that
businesses use to scramble sensitive corporate data.

The security giant said on Thursday that it would pay $300
million for privately held PGP Corp and $70 million for
GuardianEdge as it expands its line of security offerings that
currently includes anti-virus software and data loss prevention
programs.

“These acquisitions help fill product holes that should
enable the company to gain further inroads with large
enterprises, SMBs and government agencies,” FBR Capital Markets
analyst Daniel Ives said in a note to clients.

Symantec’s chief rival, McAfee Inc (MFE.N: ), entered the
encryption market in 2007 with its purchase of SafeBoot.

Demand for technology to encrypt, or scramble, data on
computers, mobile devices and storage equipment is growing
rapidly as governments are tightening regulations to protect
confidential customer data.

Symantec said that the acquisitions would hurt profit,
excluding items, in the fiscal year that ends in March 2011 by
2 cents per share, but add to earnings in the following year.

PGP posted revenue of $75 million in the year to March 31,
while Guardian edge had revenue of $18 million.

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(Reporting by Jim Finkle, editing by Matthew Lewis)

Symantec spends $370 mln on encryption companies