The issue
In mid-December 2004, The New York Times reported that information technology storage solution provider Veritas Software Corp was discussing a merger with Symantec, a leading global provider of security solutions. Three days later, the two companies confirmed plans for a $US13.5 billion merger that would create the world's fourth-largest software company.
Mike Larrenaga of PricewaterhouseCoopers US takes up the story. “We already had a strong relationship with both companies and understood their systems,” he recalls. “And as well as financial, technical and industry specialists, we had people with the back-office knowledge required by Symantec, including experience in the integration of PeopleSoft with JD Edwards. So we were asked to support the overall merger integration programme and provide back-office integration assistance.”
Our approach
Debra Skorupka and Chris Cook were two key members on the integration engagement. Chris Cook was running the integration management office—the project's engine room. “At its height, we were coordinating sixteen workstreams and about 350 people, including specialists in finance, facilities, human resources and information technology,” he recalls. The time frame was tight, with Day One for the merged operation set at 2 July 2005. He explains: “Once Day One arrives and the wheels haven't fallen off the bus, it's back to business as usual.”
Mike Boyle, the overall project leader, agrees. “The key objective was that the merged business should not skip a beat in terms of its operations or growth—and that it should come out from the merger as a stronger, more competitive business with a broader base of products,” he says. “With Day One behind us, we are now into the second phase—and we still have a lot of work to do.”
“Symantec is a client that knows exactly what it wants from its advisors,” comments Gregg Nahass, PricewaterhouseCoopers US merger integration partner. “It expects a high degree of specialisation, a seamless team approach and the ability to rise beyond the immediate task to offer valuable insights into wider business issues and risks.”
The outcome
Greg Myers, Chief Financial Officer of Symantec, describes the benefits of PricewaterhouseCoopers' involvement. “One of our key requirements was that they bring the ‘A’ team to this integration effort. Across the board, I felt the people on the team added great value. With PricewaterhouseCoopers' help, we have made real progress in integrating our global organisations over a short period of time. They have helped establish the foundation to complete our integration efforts over the next twelve to eighteen months.”
Tom Archer, leader of the US team that had advised Veritas before the merger, believes the project underlines the value for companies of having a separate, parallel business advisor aside from their auditors. “Following Sarbanes-Oxley, companies are starting to see the value of a second dedicated business advisor who understands their business, thinks through their issues and brings them exactly the right best practice, methodologies, people and industry knowledge,” he says. “That was the role that we filled here—and this project was a superb demonstration of the benefits that clients can reap as a result.”
