Broadcom pays $10.7 billion for Symantec's enterprise unit
Technology firm Broadcom will pay $10.7 billion to buy Symantec's enterprise business, the companies announced on Thursday after the close of trading.
The deal, which is expected to close in the first quarter of 2020, will bolster the company's power to fight cyber-security threats which have become more frequent, such as Capital One's hack which impacted 150 million Americans.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AVGO | BROADCOM INC. | 1,256.82 | +7.63 | +0.61% |
| SYMC | n.a. | n.a. | n.a. | n.a. |
"M&A has played a central role in Broadcom's growth strategy and this transaction represents the next logical step in our strategy following our acquisitions of Brocade and CA Technologies. Symantec's enterprise security business is recognized as an established leader in the growing enterprise security space and has developed some of the world's most powerful defense solutions that protect against today's evolving threat landscape and secure data from endpoint to cloud" said Hock Tan, President and Chief Executive Officer of Broadcom in the deal announcement.
Broadcom has been on the hunt for deals since President Trump, in March 2018, blocked its $117 billion bid for Qualcomm because of national security concerns. The Committee on Foreign Investment in the United States said Broadcom had violated its rules “on at least three separate occasions,” including trying to relocate its headquarters to the U.S. without providing proper notice to the committee.
Months later, Broadcom purchased CA Technologies for $18.9 billion as part of its new strategy -- rolling up a bunch of enterprise software companies. Broadcom has also been linked to the infrastructure software company Tibco, which in 2014 was acquired by Vista Equity Partners for $4.3 billion.
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The talks were first reported by the The Wall Street Journal.