Broadcom (NASDAQ: AVGO) officially announced that it will acquire the enterprise security business of Symantec, an antivirus software manufacturer, with a cash of $654.38+0.07 billion. Through this merger, Broadcom hopes to expand its software business.
The acquisition marks Broadcom's second gamble in the software field. Last year, Broadcom spent $654.38+089 billion to acquire software development company CA Technologies. Earlier, it was reported that Broadcom was negotiating with private equity firm Vista Equity Partners to acquire Tibco software, a commercial software manufacturer owned by the latter. Vista Equity Partners 20 14 acquired Tibco software for $4.3 billion.
Before Broadcom made a big push into the software industry through acquisition, the company tried to acquire Qualcomm, a mobile chip company, for11700 million dollars last year, but the Trump administration blocked the deal on the grounds of national security.
Regarding the acquisition of Symantec's enterprise security business, Hock Tan, CEO of Broadcom, said in a statement on Thursday that "M&A has always played a central role in Broadcom's growth strategy. The acquisition of Symantec's enterprise security business is the next logical step in our strategy. "
Symantec has been dealing with various major challenges in the past year, including layoffs and internal investigations. The investigation led Symantec to reiterate its performance, and also prompted the CEO to resign suddenly in May this year.
Broadcom said that the transaction with Symantec is expected to be completed in the first quarter of fiscal year 2020, and it needs to be approved by regulators in the United States, the European Union and Japan.