The merger of Symantec Corp and Veritas Software Corp is expected to create a new software powerhouse in the enterprise security space.

Symantec, the maker of Norton computer security products, and Veritas, which makes data backup, recovery and storage software, merged in a $13.8-billion deal.

"The combined company will be uniquely positioned to deliver information security and availability solutions across all platforms, from the desktop to the data centre, from consumers and small businesses to large organisations and service providers," Veritas said.

The combined company will operate under the Symantec name. John W. Thompson, chairman and CEO of Symantec, holds the same posts in the combined company. Gary L. Bloom, chairman, president and CEO of Veritas, is the new vice-chairman and resident of the combined company.

"Customers are looking to reduce the complexity and cost of managing their IT infrastructure and drive efficiency with fewer suppliers," Thompson said.

"The new Symantec will help customers balance the need to both secure their information and make it available, thus ensuring its integrity. We believe that information integrity provides the most cost-effective, responsive way to keep businesses up, running and growing in the face of system failures, Internet threats or natural disasters."

"Our customers have told us that one of their most critical needs is to enable 24x7 access to information. At the same time, they must maintain tight security, comply with all regulatory requirements and operate within their existing budget constraints," said Bloom.

"Through our unique portfolio of solutions, Symantec and Veritas are best positioned to address the ever-growing needs of our customers. Based on IDC data, the total market opportunity for the combined company today is approximately $35 billion and is expected to grow to $56 billion by 2007."

The aggregate revenue of the combined company is expected to be approximately $5 billion for fiscal year 2006. In addition, the combined company will have approximately $5 billion in cash.