Symantec wants to sell Veritas

Symantec logoSymantec wants to sell its Veritas data storage business to private equity firm Carlyle Group.

The word on the street is that Symantec was nearing a deal to sell Veritas to Carlyle for between $7 billion and $8 billion, but few other details are known.

Symantec shares rose 2.64 percent in after-hours trading, after closing up 0.5 percent, at $22.79, in regular trade on the Nasdaq.

Symantec has been seeking buyers for Veritas for several months but interest from potential buyers had been limited because of a tax burden associated with splitting the company.

Symantec had been planning to separate its business focused on corporate and consumer security software, which had $4.2 billion in revenue last year, from Veritas, which has about $2.5 billion in revenue. It announced the tax-free spinoff last October.

Investors have wanted Symantec to become more agile and capitalise on faster growing businesses, whether it’s through corporate breakups or divestitures. ¬†Looks like this deal is exactly what they wanted.