Deals and IPOs

Symantec to sell Veritas unit to The Carlyle Group for $8 billion in cash

Source: CNBC

Symantec on Tuesday announced plans to sell Veritas, its information management business, to an investor group led by The Carlyle Group together with GIC, Singapore's sovereign wealth fund, and other expected co-investors for $8 billion in cash.

The deal was unanimously approved by Symantec's board and is expected to close by January 1, 2016.

Bloomberg had reported first last month that Symantec was nearing a deal to sell Veritas to Carlyle for between $7 billion and $8 billion.

Symantec had been seeking buyers for Veritas for several months, but interest from potential buyers was limited because of a tax burden associated with splitting the company.

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Symantec had been planning to separate its business focused on corporate and consumer security software, which had $4.2 billion in revenue last year, from Veritas, which has about $2.5 billion in revenue. It announced the tax-free spinoff last October.

Investor pressure has been building on legacy technology companies such as Symantec to become more agile and capitalize on faster-growing businesses, whether it's through corporate breakups or divestitures.

Symantec shares traded 7 percent higher in premarket trading immediately following the report. (Get the latest quote here.)

—CNBC contributed to this report.