Filing Flows › Gen Digital (GEN) › Takeover & LBO
Is Gen Digital (GEN) a takeover target?
A leveraged buyout at today's price plus 30% ($38.73 a share) would return about 10% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $29.29 a share (−2% against today's $29.79). Historically 2.1% of companies with its figures were bought within a year (0.42× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $38.73 | today's $29.79 plus 30% |
| × shares | 603.0 million | |
| = Equity value | $23.4B | |
| + Debt refinanced | $8.1B | |
| − Cash | $420M | |
| = Enterprise value | $31.0B | 11.6× EBITDA of $2.7B |
| Fees | $621M | 2% of the price |
| New debt | $14.7B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $17.0B | 54% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $5.6B | $2.9B | $1.1B | $1.4B | $13.4B |
| Year 2 | $6.0B | $3.1B | $1.0B | $1.6B | $11.8B |
| Year 3 | $6.4B | $3.3B | $902M | $1.8B | $10.0B |
| Year 4 | $6.6B | $3.4B | $764M | $2.0B | $8.0B |
| Year 5 | $6.8B | $3.5B | $610M | $2.2B | $5.8B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 9.6× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $33.5B | |
| − Debt left | $5.8B | |
| = Buyer's equity | $27.7B | |
| Money multiple | 1.64× | on $17.0B put in |
| Buyer's yearly return (IRR) | 10.4% |
Price against return
What the buyer makes at other premiums over today's $29.79; the IRR reaches 20% at $29.29 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $32.77 | 15.9% |
| 20% | $35.75 | 12.9% |
| 30% | $38.73 | 10.4% |
| 40% | $41.71 | 8.1% |
| 50% | $44.69 | 6.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $5.2B | |
| EBITDA, last 12 months | $2.7B | 51.2% of revenue |
| Depreciation and amortization | $490M | |
| Capital spending | $16.0M | |
| Debt | $8.1B | |
| Cash | $420M | |
| Share price | $29.79 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 29% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Gen Digital would cost about $38.73 a share, $23.4B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $33.36 | $20.1B |
| Median | 30% | $38.73 | $23.4B |
| High end (a quarter paid more) | 31% | $39.02 | $23.5B |
The odds, from history
Historically 2.1% of companies with its figures were bought within a year (0.42× the average). Its figures put it in decile 1 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Gen Digital's latest quarter
Gen Digital, Q2 FY27: revenue $1.4B (+12% year over year), operating margin 37.0%, net earnings $287M, operating cash flow $326M. The chart follows the revenue to costs, profit and cash.
Questions
Is Gen Digital being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Gen Digital?
A leveraged buyout at today's price plus 30% ($38.73 a share) would return about 10% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $29.29 a share (−2% against today's $29.79).
What would a takeover of Gen Digital cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Gen Digital would cost about $38.73 a share, $23.4B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.