Shareholders of Symantec Corp. and Veritas Software Corp. have approved a merger between the two companies. The deal could result in the largest software merger ever, according to the Associated Press.
Under the terms of the merger, which is expected to close on July 2, each share of Veritas stock would be exchanged for 1.1242 shares of Symantec stock. That would put the value of the deal at $11 billion, according to the AP, which reports that when the merger was announced back in December, it was valued at $13.5 billion.
In contrast, Oracle wound up paying $10.6 billion for PeopleSoft, according to the wire service.
The approval of the deal means that Symantec intends to move forward with a $3 billion share buyback, which would take effect around mid-August, according to Reuters.
Veritas is known for its storage software, while Symantec’s strength is providing programs that secure personal computers, the AP points out in its analysis of the merger. Symantec decided to go through with the transaction to fortify itself against Microsoft Corp.’s move into the security business, the wire service adds.
Completion of the deal had seemed somewhat in doubt after some Symantec shareholders raised concerns about the future growth rate of the combined company and whether the two entities could successfully integrate their businesses. A recent endorsement of the merger by Institutional Shareholder Services, however, gave it a boost, according to the AP. Nearly 95 percent of the Symantec votes cast favored the deal during what the AP describes as a brief meeting that was broadcast over the Internet.