“That’s the plan, to spin it,” Chief Executive Michael Brown said in an interview. “For shareholders, it’s tax free, which is a huge advantage for them.”
Reuters reported last week that Symantec had been exploring a sale of its Veritas information management and storage unit or of the whole company. But interest from potential buyers has been limited because of a tax burden associated with splitting the company.
Symantec expects the spin to be complete by the beginning of 2016
In fiscal year 2016, which started April 4, Symantec said revenue will be flat to up 2 percent with EPS growth between $1.80 and $1.90 per share. Veritas’ adjusted revenue will be up 4 to 7 percent.
The company is targeting 2016 cash flow for the combined companies in the range of $1.4 billion to $1.5 billion. For 2017, it is aiming for cash flow at Veritas to be between $750 million and $820 million, and between $1.08 billion and $1.44 billion at Symantec.
Disclosure: The author holds no position in any stock mentioned.