Broadcom confirms buy of Symantec for $10.7B

Broadcom HQ
After ups and downs, Broadcom announced it is buying Symantec for $10.7 billion to add to its software portfolio. (BY-SA 3.0)

Broadcom confirmed it is buying Symantec’s enterprise security business for $10.7 billion in cash on Thursday.

The deal was on-again, off-again at various times in July. At one point, it was reported that Broadcom would pay about $20 billion for Symantec. 

There was also talk in July that Broadcom wanted another software company and was considering either Tibco or Symantec.

Sponsored by Infosys

Infosys positioned as a Leader in Gartner Magic Quadrant for IT Services for Communications Service Providers, Worldwide 2020

The Gartner Magic Quadrant evaluated 12 vendors and Infosys was recognized for its completeness of vision and ability to execute.
Infosys leverages its global partner ecosystem, CSP-dedicated studio, design tools, and 5G Living Labs to boost service delivery. Innovative solutions such as the ‘Infosys Cortex2’ are driving business value for CSPs.

Broadcom CEO Hock Tan called the acquisition the “next logical step in our strategy” after acquiring Brocade and CA.  Broadcom expects $2 billion in added revenues as a result of the deal within a year of closing.

Symantec’s enterprise security portfolio will expand Broadcom’s infrastructure software footprint, the company said. Currently, software brings in 22% of revenues and will grow to 29% with the Symantec business, Tan said in a conference call announcing the deal.

The overall market for cybersecurity is $160 billion, giving Broadcom the ability to cross-sell its previous software products from Brocade and CA, Tan said.

Symantec offers three key areas for security: endpoint protection, secure web gateway and data loss prevention.

The transaction is expected to close in the fiscal quarter that begins in November, but it is subject to regulatory approvals in the U.S., EU and Japan.

Broadcom will own and incorporate the Symantec brand name into its portfolio.

Broadcom reaffirmed its fiscal year 2019 revenue estimate is $22.5 billion, with $17.5 billion from chips and $5 billion from infrastructure software.

RELATED: EU opens antitrust investigation into Broadcom, imposes interim measures 

Read more on

Suggested Articles

Lab inside ST fab in Singapore will bring together scientists from A * STAR Institute of Microelectronics and Japan’s ULVAC

The rush to test ventilators was “like sprinting down a pier while also building the pier”

Xilinx stock gained 7% on news of the $35 billion deal while AMD dropped nearly 5%.