To get hold of VeriSign's authentication business, Symantec will be paying US$1.28 billion. The rumored acquisitions have today been confirmed by both the Companies. Naming Symantec as the consumer, there had been a hearsay that VeriSign had been shopping its encryption technology and service business lately.

Under this, Symantec Corp. (SYMC) has approved to purchase VeriSign Inc.'s (VRSN) identity and authentication business. This deal accounts to be worth for $1.28 billion in an effort to round out its information-protection business.

In 2009, this trade earned profits of $410 million, which accounted to be 40% of VeriSign's total. Also, in September 2011 quarter, Symantec expects the deal to add to its earnings.

"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", said Symantec CEO Enrique Salem.

Two-factor authentication tokens, fraud detection and public key infrastructure products are sold by VeriSign business unit, catering government and the enterprise.

This deal will close by September and is subjected to regulatory endorsement.