Symantec has agreed to buy LifeLock for $2.3 billion. The deal is likely to boost the company's Norton cybersecurity unit. LifeLock offers identity theft protection products including monitoring services. Symantec will fund the transaction with its cash holding and $750 million of new debt.

Like Us on Facebook

The deal signals Symantec's transition towards cybersecurity. Earlier this year, the company bought Blue Coat from Bain Capital for $4.65 billion. Blue Coat offers security product for Internet. Symantec does not expect the LifeLock deal to have a material impact on its financial results next year.

"With the combination of Norton and LifeLock, we will be able to deliver comprehensive cyber defense for consumers," Symantec Chief Executive Officer Greg Clark said. He also added that the acquisition would broaden the company's horizons from consumer security to offering broad digital safety to the users.

LifeLock has been looking for potential suitors in the last couple of months. The deal valued the company at $24 per share, showing a 16 percent premium on its closing price on Friday. It is reported that several other firms such as Evergreen Coast Capital and Permira were also interested in the identity protection company.

Symantec had been seeing decline in its security software business. The main reason for the decline is the emergence of mobile banking. The company CEO said that Norton's market share had been declining. He said that the deal would bring $660 million worth of the revenue to the consumer business unit.

Fran Rosch, executive vice president of Norton Business Unit, said that the company had made a foray into the identity security market earlier as well. However, it lacked the market reach enjoyed by LifeLock, which is reported to have nearly 4.4 million subscribers. He said that the company was required to increase its "value proposition."