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.
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.