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Company News

UPDATE 1-Symantec says to acquire Vontu for $350 million

(Adds background on Vontu; earnings impact)

NEW YORK, Nov 5 (Reuters) - Symantec Corp SYMC.O, the maker of Norton security software, said on Monday it would pay $350 million to buy privately held Vontu, which makes data loss prevention software.

Symantec said the deal is expected to close in the fourth calendar quarter of 2007, subject to regulatory approval.

The company said it plans to use Vontu to bolster its security business with data loss prevention software, which helps prevent the loss of confidential or proprietary information wherever it is stored or being used.

“In a business environment that is increasingly competitive, transparent and regulated, companies need confidence that their most valuable asset -- information -- is safe,” said Tom Kendra, group president of the Security and Data Management Group at Symantec.

Symantec said the deal should dilute fiscal 2008 earnings by 2 cents per share on a non-GAAP basis. It said the deal would be more dilutive to GAAP earnings because of purchase accounting, stock based compensation and acquisition related charges.

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