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Sale (instead of spin) doesn't change Veritas strategy

The executives who have been working to turn Veritas Technologies into a standalone company say their plans have not changed with the $8 billion sale to The Carylye Group.

Symantec disclosed last October that it would spin off its storage business into a separate company, and said in January that the new company would be called Veritas. The plan called for Veritas to become a separate public company in January 2016.
However, Symantec shopped Veritas to interested suitors and found Carlyle’s price was right to buy Veritas and run it as a privately held company.

The Carlyle acquisition is expected to close around the end of this year, around the same as the spinout was planned. Matt Cain, Veritas EVP and chief product officer, said little else will change from the company profile and strategy he laid out for in June. He added this week that Veritas is continuing with plans to roll out backup and data management products that it disclosed last month, including NetBackup 7.7.

Cain said more products will be launched before the Carlyle acquisition closes.

“There’s no change to our strategy,” Cain said. “Employee count, location, leadership team, product roadmap will be the same. We may be accelerating the pace at which we execute, either through acquisitions, or other inorganic growth.”

Cain will remain in his position after the acquisition, and Brett Shirk will stay on as VP of worldwide sales for Veritas.
Veritas general manager John Gannon, who led the transition period in anticipation of a spinout, will join the Veritas board.
The Carlyle Group said Bill Coleman will be CEO and Bill Krause will become chairman when the deal closes.

Symantec CEO Michael Brown said during a conference call Tuesday that Symantec “considered other options for our Veritas business and ultimately determined that a sale of Veritas to Carlyle is in the best interest of Symantec’s shareholders because it delivers both an attractive and certain value.”

Gannon would not disclose those other options.

“We just got married,” he said. “We can’t talk about who else we dated.”

He did say Carlyle executives “strongly believe in our strategy, our market position and product portfolio and want to be part of it.

“This is a different outcome than the spinout we originally announced but we believe it is tremendous value to Symantec and Veritas because the outcome is certain.”

Symantec actually received $5.5 billion less for Veritas than it paid for the storage software vendor in its $13.5 billion 2005 acquisition.