Joining the league of technology companies splitting in two like eBay and PayPal and Hewlett-Packard, the American technology company head quartered in Mountain View, California, Symantec corporation have also announced their separation into two publicly traded companies.
On Thursday, Norton antivirus software maker announced their, one selling security software and the other providing data management unit.
The company has fired two CEOs in the last two years due to its lagging stock and financial performance makers.
This effort of the company to boost their share prices was described as an move taken after “an extensive business review” of its strategy and structure.
Michael Brown, President and CEO of Symantec Corporation said that this step is meant to provide both the units flexibility and focus that is needed for growth and creation of more shareholder value.
The first company will mainly deal with cybersecurity services ranging data center security, data encryption and user authentication that during fiscal year 2014, generated $4.2 billion in revenue.
The data management company will work on Symantec’s information management business which was responsible for $2.5 billion revenue in fiscal 2014 will provide backup and recovery, archiving and storage management services.
By December 2015, a tax-free distribution is expected to take over.
As per company press release, The CEO and President post will be retained by Michael Brown and Thomas Seifert will continue with his role as the CFO.
The second split unit will have John Gannon as General Manager and Don Rath as its acting CFO.
“We really are in two businesses, and there are a lot of disruptive trends in each,” said Brown.
“The best way to execute better and grow faster is to be separating into two companies.”
Symantec has not revealed much details and is expected to disclose the details amid its second quarter call, that will occur after the bell on November 5.
“Post split, you have two companies, one focused more on cash flow and one focused more on revenue. So, put together, can it help revenue? I think it can, certainly, but you have to execute,” investor Tim Ghriskey.
Symantec shares closed down at $23.44 on the Nasdaq on Thursday. Year-to-date, the stock has rose up to just 2.3%.