Symantec’s $24-per-share offer amounts to a $2.3 billion enterprise value (that is, valuation not including cash and debt) for LifeLock. Symantec plans to pay for the deal using cash and $750 million in new debt.
The companies expect to close the deal during the first quarter of calendar 2017.
Symantec CEO Greg Clark told Reuters that LifeLock will inject $660 million per year into his company’s consumer business. That matters because Symantec’s consumer franchise — the Norton brand name — has been dependent on personal computer sales, which are down due to the rise of smartphones.
The deal is a sequel to Symantec’s acquisition of web security firm Blue Coat, which closed earlier this year.
Symantec shares rose about 5 percent to $24.86 by late afternoon. LifeLock shares were up 15 percent at $23.88.
Based in Tempe, Arizona, LifeLock was founded in 2005 and went public in 2012.
The LifeLock service has been popular, but the company has also had its share of uncomfortable publicity. CEO Todd Davis famously made his social security number available to show how LifeLock could protect him; the Phoenix New Times found that his identity got stolen at least 13 times.
In 2010, LifeLock paid $12 million to settle with the FTC and 35 state attorneys general over accusations of deceptive advertising.