PALO ALTO, Calif. --February 19, 1997-- Hewlett-Packard Company (NYSE: HWP) and Symantec Corporation (Nasdaq: SYMC) today announced they have signed a nonbinding letter of intent for HP to purchase the assets of Symantec's Networking Business Unit and incorporate it as part of HP's OpenView system- and network-management business. This move would strengthen HP's leading position as a global, total-solution provider of information-technology (IT) management software and services and allows Symantec to focus on its core competencies in productivity and security-software solutions.
Symantec's Networking Business Unit is responsible for Norton Administrator Suite, which includes Norton Administrator for Networks, Expose server-management solution and Norton Desktop Administrator. These products would allow IT administrators to increase productivity and reduce the total cost of ownership of networked PCs and servers. HP plans to market these products as part of its HP OpenView product family.
Symantec's Networking Business Unit and more than 85 of its employees are expected to be incorporated into HP's Network and System Management Division (NSMD). Preliminary terms of the letter of intent provide for a stream of payments over two years not to exceed a present value of $30 million. Symantec expects to incur a one-time charge of $8 million to $10 million as a result of the transaction.
Over the past year, HP has taken steps to provide customers with packaged, off-the-shelf HP OpenView Windows NT-based management solutions. These Symantec products, integrated with the HP OpenView portfolio, complement HP's management solution set for network, server and PC management for small to large global enterprises.
"Symantec has achieved great success with its networked PC-management solutions," said Olivier Helleboid, general manager of HP's Network and System Management Division. "The incorporation of Symantec products into OpenView will help customers implement a well-managed environment, the secret to reducing the total cost of ownership of networked computer systems. HP OpenView is critical to HP's strategy to help customers successfully manage their enterprise networked systems."
"In HP, we found a strong partner that could provide customers with the best combination of management tools, services and support," said Mark Bailey, senior vice president of business development and emerging businesses for Symantec. "This move allows us to focus our strengths in software applications that improve the reliability and productivity of computers. The Norton Administrator product line complements HP's OpenView system and network-management strategy, and the combination will bring even more value to our mutual customers."
Today's announcement is expected to strengthen the business and marketing alliance between HP and Symantec that began in 1994. HP licensed Norton Administrator for Networks and Expose and currently includes the products as part of its HP OpenView Professional Suite and HP OpenView IT/Administration solutions.
Symantec Products to be Acquired by HP
HP will be purchasing three components of Symantec's Norton Administrator Suite:
HP will operate the new unit of NSMD at its current location in Santa Monica, Calif., and will fund new product development, functionality enhancements and future releases.
This acquisition is expected to result in additional HP OpenView Windows NT-based products for HP's value-added reseller channel. HP expects this will create new service opportunities for the channel. Today's announcement follows HP's recently announced enhancements to the highly successful HP OpenView Authorized Channel Partner Program. Symantec resellers will be given the opportunity to join the HP OpenView Authorized Channel Partner Program.
The proposed acquisition is expected to be completed this spring and is subject to a antitrust review by the federal government and customary closing conditions.
About Symantec Corporation
Symantec Corporation develops, markets and supports a broad line of application and system software to enhance individual and workgroup productivity as well as manage networked computing environments. Platforms supported include IBM personal computers and compatibles, Apple Macintosh computers as well as all major network operating systems. Founded in 1982, the company's global operations span North America, Europe and several fast growing markets throughout Asia Pacific and Latin America. Information on the company and its products can be obtained by calling (800) 441-7234 toll free or (541) 334-6054.
About HP OpenView and HP
HP's OpenView Program offers users integrated network, system, application and database management for multivendor distributed computing environments. Solutions consist of a broad portfolio of management products from HP and OpenView partners and a complete set of services to help customers reduce network downtime, improve service and reduce operating costs. There are more than 300 HP OpenView authorized resellers worldwide.
HP is the world's largest producer of network- and systems-management products, with HP OpenView installed in more than 100,000 networks around the world. There are more than 290 complementary HP OpenView-based management solutions available on a variety of platforms, including HP-UX(1), Sun Solaris, Microsoft Windows and Windows NT systems.
Hewlett-Packard Company is a leading global manufacturer of computing, communications and measurement products and services recognized for excellence in quality and support. HP has 112,800 employees and had revenue of $38.4 billion in its 1996 fiscal year.
Information about HP OpenView products can be found on the World Wide Web at http://www.symantec.com/PressCenter.