Broadcom Makes $10.7 Billion Deal to Buy Symantec's Corporate-Focused Security Business
August 08 2019 - 5:30PM
Dow Jones News
By Asa Fitch
Broadcom Inc. struck a $10.7 billion deal to buy Symantec
Corp.'s enterprise security business, as it steps up efforts to
expand beyond chip making.
Semiconductor maker Broadcom, which has a history of
acquisitions, Thursday said the cash acquisition was the next
logical step in building a business around software for
companies.
The Wall Street Journal on Wednesday reported the two companies
were close to a deal after talks for Broadcom to buy all of
Symantec collapsed last month.
The part of Symantec, best known for its antivirus software,
that Broadcom is buying focuses on sales to companies. That part
contributes roughly half of Symantec's $5 billion in annual
revenue. The consumer segment accounts for the rest of the 37-year
old company's revenue.
Broadcom Chief Executive Hock Tan has been focused on
diversifying beyond the company's core chip business and pushing
into the lucrative software arena. Last year, he struck a roughly
$19 billion deal to buy software firm CA Technologies, formerly
Computer Associates.
The Symantec business will add an expected $2 billion to
Broadcom's annual revenues going forward, Broadcom said, and would
generate savings of more than $1 billion by eliminating cost
overlaps in the year after the deal closed.
Write to Asa Fitch at asa.fitch@wsj.com
(END) Dow Jones Newswires
August 08, 2019 17:15 ET (21:15 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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