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Symantec Buys MessageLabs: Transaction Assessment

On October 8, 2008, Symantec announced its intention to acquire MessageLabs. This is our assessment of the transaction.

Much of the information presented here is not publicly available. Our off-the-record sources in reports such as these include stockholders, present and past company employees, present and past board members, and people who have participated in confidential meetings with the vendors concerned.

Report 804. 7 pages.

Table of Contents

Executive Summary
The Companies and Their Technologies
     About Symantec
     About MessageLabs
     Benefits for Symantec
     Orphan Technology
     Challenges Arising from the Acquisition
The Transaction
     Terms of the Deal
     Comparable Transactions
     Selected Symantec Acquisitions
     MessageLabs Financials
     Other Primary Valuation Considerations
     Deal History and Negotiation
Implications and Recommendations
     For MessageLabs’ Customers
     For MessageLabs’ Competitors
     For Symantec’s Customers
     For Symantec’s Competitors
     For Symantec’s Stockholders
Other
     Additional Comments
     What We Got Wrong in Our Quick-Response Webcast
     Further Information and Interpretation
     Sources of Information


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