Symantec's $4.65bn (£3.27bn) takeover of Blue Coat "calls into question" its consumer security business, according to an analyst.
The acquisition is expected to be completed in Q3 this year and will see Blue Coat chief executive Greg Clark become Symantec CEO, after former boss Michael Brown stepped down in April.
The deal will lead to a stronger enterprise presence for Symantec, which could jeopardise its consumer business, research director at TechMarketView Angela Eager claims.
"Blue Coat's outward-facing enterprise web and network threat-blocking capabilities complement Symantec's 'inside the enterprise' skills," she said.
"The companies say there is virtually no overlap between them, which is good on one level but says something about Symantec's challenge in the cybersecurity market against the likes of Palo Alto Networks and Check Point Software Technologies.
"The increased enterprise focus does call into question Symantec's consumer security business, although not immediately as it is a profitable unit."
Etienne Greeff, chief executive at Symantec partner SecureData, told CRN that the deal is good business for Symantec, and highlighted the "stonking" price that the vendor is paying, which stands at around six times Blue Coat's revenue.
"It complements a lot of areas in which Symantec is weak," he said.
"Symantec doesn't have a strong cloud offering with content and a strong client business with content, and also they don't have a strong security channel in that space so they're getting all those things by acquiring Blue Coat.
"It's going to create a very interesting player in that space – and a significant player in that space."
The agreement marks a U-turn from Blue Coat owner Bain Capital which at the beginning of the month confirmed plans for an IPO.
"With employees of Blue Coat and Symantec coming together, we will be well positioned to drive meaningful growth and push the boundaries of innovation," said Clark.
"I am very excited about the opportunity to join Symantec as CEO and look forward to working with the strongest, deepest team in security to realise the many strategic and financial benefits this transaction will create."
Symantec will take out $2.8bn of new debt to fund the deal, which is subject to regulatory approval.
Symantec chairman Dan Schuman said: "With this transaction, we will have the scale, portfolio and resources necessary to usher in a new era of innovation designed to help protect large customers and individual consumers against insider threats and sophisticated cybercriminals."
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