Symantec Corp. said late Wednesday that it will buy VeriSign’s identity and authentication business for about $1.28 billion in cash. The deal includes a majority stake in VeriSign Japan. Symantec expects the deal to dilute its 2011 adjusted earnings by 9 cents a share but add to earnings for the September 2011 quarter. In a separate statement, VeriSign said while Symantec is likely to offer jobs to most of its employees, once the deal is closed, VeriSign may have to eliminate some positions that are not moved to Symantec. The transaction is expected to finalize in 60 to 90 days.

“With the anonymity of the Internet and the evolving threat landscape, people and organizations are struggling to maintain confidence in the security of their interactions, information and identities online. At the same time, people’s personal and professional lives have converged and they want to use their various digital devices to access information wherever they are without jeopardizing their privacy,” said Enrique Salem, president and CEO, Symantec. “IT is faced with the challenge of giving users the appropriate access, while ensuring that corporate data is not at risk. We believe the solution to this dilemma lies in the ubiquity of identity-based security. With the combined products and reach from Symantec and VeriSign, we are poised to drive the adoption of identity security as the means to provide simple and secure access to anything from anywhere, to prevent identity fraud and to make online experiences more user-friendly and hassle-free.”

“This transaction allows VeriSign to focus on the growing Internet infrastructure services business, where we expect to build on our expertise and record of success as the longtime operator of the .com and .net domain infrastructures. Following the close of this transaction, VeriSign will have a strong balance sheet, growth opportunities and a continuing commitment to deliver value to our customers and shareholders,” said Mark McLaughlin, VeriSign president and CEO. “The market for security and authentication services is rapidly changing in favor of large distribution channels, extensive product sets and integrated service delivery. We believe Symantec’s leading position as the premier end-to-end security provider will enable them to better serve our authentication customers and accelerate market growth.”

“For 15 years, VeriSign has pioneered the SSL and related authentication services business,” said Jim Bidzos, VeriSign founder and executive chairman. “Today, Symantec is the best company to drive this business forward, and we believe this transaction will benefit our employees, customers and shareholders.”