Symantec (NASDAQ:SYMC) announced that it has acquired LiveOffice, a cloud-based enterprise email archiving company, for $115 million. [1] LiveOffice is a leading provider of email management, archiving, storage and backup solutions. The acquisition will help Symantec improve its information management products which are a part of its enterprise security software business. Symantec competes primarily with McAfee, owned by Intel (NASDAQ:INTC), HP (NYSE:HPQ), Trend Micro and Kaspersky in security software for businesses.
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LiveOffice enables customers to archive and manage their email on-premise, and also allows them to host it remotely in the cloud. It already has 20,000 clients. LiveOffice’s offering will likely be integrated with Symantec’s Enterprise Vault and the Clearwell eDiscovery platforom recently acquired by Symantec. It will enable Symantec to offer a complete email protection, security, archiving and discovery solution.
Symantec currently has approximately 30% market share in enterprise security software. We expect it to marginally increase its market share by the end of the forecast period. However, acquisition like LiveOffice could enable it to capture additional market share going forward. You can check out the impact of any changes in its market share on its value using this chart.
Security software for businesses accounts for nearly 17% of Symantec’s $20 Trefis price estimate, which stands nearly 30% above its current market price.
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Notes:- Symantec acquires cloud storage vendor LiveOffice, ComputerWorld [↩]
