Sale of the Veritas Business Could Boost Symantec's Valuation by 10%

Global security software giant Symantec Corp. is reportedly closing in on a deal to sell its information management business, Veritas, to private equity firm Carlyle Group. The sale could bring in $7-$8 billion for Symantec and close the book on a sluggish, unprofitable business that the company acquired in 2005. We estimate that if the transaction goes through, it could result in a 10% upside to our price estimate for the company. The upside is expected to be a result of the higher profitabilit...