CUPERTINO, Calif. - May 19, 2004 - Symantec Corp. (Nasdaq: SYMC), the global leader in information security, today announced that it has signed an agreement to acquire Brightmail, the worldwide leader in anti-spam technology, in a cash transaction valued at approximately $370 million. Brightmail's market-leading anti-spam technology will be a key complement to Symantec's broad array of gateway security solutions.
The acquisition, conditioned upon customary regulatory approval, is expected to close by early July. It is too early to estimate the impact of intangibles on GAAP results from this transaction. As such, Symantec intends to discuss the impact, if any, on GAAP and non-GAAP results at some point in the future.
"Spam has increasingly become one of the most severe threats to individuals and enterprises today, topping viruses as the number one problem plaguing email systems and administrators," said John W. Thompson, Symantec chairman and chief executive officer. "Brightmail is the leader in helping enterprises, service providers, and wireless carriers mitigate this threat. Their patented technology is a critical component of a comprehensive gateway security solution."
"We've built a complete spam defense offering that includes multiple technologies such as proactive heuristic and reputation-based blocking for the most robust, multi-layered defense, providing the highest accuracy rating in the industry, " said Enrique Salem, Brightmail president and chief executive officer. "By joining forces with Symantec, we can provide our combined base of customers around the world with the broadest messaging security solution in the industry."
Brightmail's industry-leading anti-spam technology protects the networks of enterprises, service providers, and wireless carriers by filtering spam, viruses and undesired messages at the Internet gateway. Brightmail Anti-SpamTM uses multiple proprietary technologies, a globally deployed detection network, and a dynamic rule delivery mechanism to identify and filter unsolicited or unwanted electronic messages while reducing the number of blocked legitimate e-mails, or false positives, to less than one message in a million.
Brightmail Anti-Virus™ already combines Symantec's award-winning antivirus technology with Brightmail's high-performance, scalable architecture. By stopping and cleaning infected messages at the Internet gateway, Brightmail Anti-Virus is the solution for the world's largest service providers to protect their networks and end-users from the threat of email-borne viruses.
The Brightmail Reputation Service complements its anti-spam product, providing businesses with an additional level of security against messaging security threats by allowing them to block messages from identified spam sources. Brightmail Anti-Fraud protects established businesses from fraudulent e-mails that mimic legitimate communications in order to steal financial or personal data.
Symantec made a strategic investment in Brightmail in July 2000 and currently holds an approximately 11 percent equity stake in the company. Subsequent to the filing of a registration statement in March 2004 for an initial public offering, Brightmail's board of directors and stockholders determined the combination with Symantec to be a more favorable strategic alternative.
Brightmail, the global anti-spam market leader delivers technology that makes messaging environments secure and manageable. PC Magazine's EDITORS CHOICE for best enterprise anti-spam software, Brightmail Anti-Spam protects the email networks of businesses, government agencies, and service providers, blocking unsolicited bulk email, or "spam", while assuring that legitimate mail is reliably delivered. Brightmail protects over 1,800 enterprises globally, including Avaya, eBay, Bechtel, Booz Allen Hamilton, Cisco, Cypress Semiconductors, Deutsche Bank, Eastman, Lucent Technologies, Macromedia, Microsoft, Motorola, SAS and Terra Lycos. Brightmail also provides spam protection for the leading Internet service providers, including AT&T WorldNet, Cox Communications, EarthLink, MSN, TelstraClear, Xtra and Verizon Online. Brightmail now protects approximately 300 million mailboxes worldwide. For more information, visit www.brightmail.com.
Symantec is the world leader in providing solutions to help individuals and enterprises assure the security, availability, and integrity of their information. Headquartered in Cupertino, Calif., Symantec has operations in more than 40 countries. More information is available at www.symantec.com.
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FORWARD LOOKING STATEMENT: This press release contains forward-looking statements, including forecasts of future revenue and earnings per share, expected industry patterns, and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates, particularly in consumer products; whether certain market segments, particularly enterprise security, grow as anticipated; the positioning of Symantec's products in those segments; the competitive environment in the software industry; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether Symantec can successfully develop new products and the degree to which these gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. Additional information concerning these and other risk factors is contained in the Risk Factors sections of Symantec’s previously filed Form 10-K and Form 10-Q.