Reginal Thomas
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Symantec to sell Veritas for $8 billion

Symantec Corp. is selling its data storage unit, Veritas, to a group led by Carlyle Group LP for $8 billion as it looks to raise cash to further turn around its security software business.

The agreement is the largest U.S. leveraged buyout of 2015. Symantec’s shares fell 5% earlier on Tuesday as investors react to the firm’s weak earnings and forecast report.

Daniel Ives, an analyst for FBR Capital Markets said, “Now they really get a new lease on life in terms of focusing on their core security DNA as the Veritas storage piece has been a massive black cloud on the Symantect story for a decade.”

Symantec’s revenue’s from its consumer security business dropped 19% in the first quarter, while revenue from its enterprise security business fell 13%.

Veritas accounts for nearly 40% of Symantec’s total revenue fell 10%.