Why did Symantec buy Verisign's security business ?

Q: Why did Symantec buy Verisign's security business ?
A 3.5 revenue multiple for a revenue stream comprising largely of a commoditized business (SSL) begs for a strong rationale that goes beyond pure top line growth for this acquistion. Would love to hear of use cases that this will enable that will result in new products/offers from this combined entity.

A: Here are quick comments:
1- Symantec will have direct access to almost all major enterprise accounts using Verisign's SSL certificate relationship. there are a lot of cross-sell opportunities for Symantec such as securing server 2 server communication. On the retail side Symantec can cross sell Norton line at Verisign's high-volume SSL online store

2- Last year Verisign asold MSS (to Secureworks) and security consulting (to AT&T) units, these were the overlapping units for Symantec. The security products that Symantec acquired from Verisign do not have an overlap with Symantec's existing portfolio.

3- Related with the note above, Symantec could not provide full identity management solutions. With Verisign acqusition (SSL certificates, Trust Seal, PKI, VIP ) they will fill-in a big gap. This creates a nice go-to-market plan. e.g. Hosted PKI, Norton Identity Safe etc..

4- All cloud based / remote management solutions (e.g. HEP from Symantec) rely on certificates, Verisign acquisition will play a strong role for Symantec's cloud strategy. Identity security is a key block in delivering cloud based solutions for data security and compliance.

5- Check-out PGP and GuardianEdge acquisitions. They will all integrate well with Vontu line when Verisign's solutions are added to the mix..Verisign complements encryption really well. Re-evaluate data at rest, data in transit and data in use terms : )

6- Verisign has a good brand name, Symantec can definitely leverage the Verisign name

7- The value of the deal can be multiplied if Symantec manages to integrate security solutions (inlcuding this Verisign Portfolio) with its Veritas, Altiris, MSS, and Hosted Security (MessageLabs) lines.

Let me know if you have a specific question,

regards,
- yinal ozkan
 (on personal behalf)