Symantec will acquire identity protection specialist cyber security outfit LifeLock, an Arizona-based firm in a deal worth $2.3bn.
The security giant Symantec will be paying $24 per and both boards of directors have agreed to the deal which is awaiting regulatory approval and expected to be closed during the first quarter of 2017.
LifeLock still needs to get approval from its shareholders for the deal to move forward.
According to Symantec, the market is growing with rising concern about digital security.
In the recent years, the number of victims of cybercrime has increased significantly while in 2015 alone, about one third of American citizens and more than 650 million people across the world were victims of cyber crime.
According to an estimate by Symantec, the market for digital safety has grown to a $10bn and rising.
The acquisition will bring together its Norton consumer security brand with identity protection expertise of LifeLock.
Following the deal, Symantec is expecting that the combined entity would create a big consumer security business with $2.3bn in annual revenue.
Symantec CEO Greg Clark said: “As we all know, consumer cybercrime has reached crisis levels. LifeLock is a leading provider of identity and fraud protection services, with over 4.4 million highly-satisfied members and growing.
“With the combination of Norton and LifeLock, we will be able to deliver comprehensive cyber defense for consumers. This acquisition marks the transformation of the consumer security industry from malware protection to the broader category of Digital Safety for consumers.”
LifeLock CEO Hilary Schneider said: “After a thorough review of a broad range of alternatives, our board of directors unanimously concluded that Symantec is the ideal strategic partner for LifeLock and offers our shareholders a significant premium for their investment, at closing.
“Together with Symantec we can deploy enhanced technology and analytics to provide our customers with unparalleled information and identity protection services. We are very pleased to have reached an outcome that serves the best interests of all LifeLock stakeholders.”
Symantec is planning to finance the deal with cash at its disposal and by taking out a debt of $750m.