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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.
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(END) Dow Jones Newswires
August 08, 2019 17:15 ET (21:15 GMT)
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