Symantec plans to establish internet tools business unit as independent internet technology company

Symantec announced today that it plans to leverage its strength in the Java development solutions market by spinning out its Internet Tools business unit to create a new, independent company.

The new company will focus on the enterprise market by providing solutions for e-commerce and technology for Web-enabling business systems and legacy applications. According to Forrester Research, the market for sell-side e-commerce software is predicted to grow to $1.4 billion by 2002. The new company will also continue development and support of the award-winning and market-leading VisualCafé product family.

With customers such as Nike, United Airlines and GE Information Systems, and partnerships with leading companies including BEA, Compaq, HP, Iona and Oracle, Symantec`s Internet Tools business unit is regarded as the leading provider of Java development solutions for web-enabling enterprise organizations. According to PC Data, the business unit has grown its share of the Java market from 33 percent to 56 percent in the past year, ahead of companies such as Microsoft, IBM, Inprise, and Sun.

"We have the best technology in a fast growing market," said Symantec president and CEO, John W. Thompson. "Creating an independent company will put the spotlight on our expertise and capability as an Internet company. The new company will be able to focus more clearly on the needs of customers in this arena, compete more effectively and move faster to take advantage of opportunities as they arise. This is great news for employees, customers and shareholders."

Thompson added that spinning out the Internet Tools business unit will enable Symantec to leverage its core competencies to build security and connectivity related solutions for customers taking advantage of the power of the Internet.

"Our Java development solutions are purchased by enterprise developers to Web-enable legacy systems, business systems and create e-commerce solutions," Thompson said. "Our other products are purchased by professionals who have responsibility for keeping networks secure and users productive. By setting up two separate companies we are able to focus very clearly on the needs of these two very different buying groups."

Mansour Safai, vice president of the Internet Tools business unit added: "With the new company, Symantec intends to leverage its award-winning web technologies to grow its presence in the enterprise market by helping corporations integrate the web within their existing business systems and migrate to a new generation of web-based applications in an easy and cost-effective way."

The new Symantec Internet solutions company is expected to be formed within the next three to nine months. Although Symantec will initially be the sole stakeholder, the company expects additional third party investors. Approximately 120 employees in development, marketing, sales and administrative functions will transfer from the Internet Tools business unit and additional hiring is expected to begin shortly.