Broadcom is considering buying Tibco, which makes infrastructure software, but the deal wouldn’t go through if Broadcom buys Symantec, according to sources.
CNBC reported the Tibco purchase possibility on Friday relying on unnamed sources who are familiar with the insight.
Broadcom wanted to buy chipmaker Qualcomm last year, but was blocked by the Trump administration. Then CEO Hock Tan focused on software companies and purchased CA for $19 billion.
Vista Equity Partners purchased Tibco for $4.3 billion in 2014, and was reported by Bloomberg to be considering a sale of Tibco in 2018.
CNBC said Tan is determined to make a large acquisition this year, so different groups of Broadcom advisors are working on deals for both Symantec and Tibco at the same time.
Broadcom has been hurt by the trade uncertainty surrounding Huawei, and cut its forecast for semiconductor sales by $2 billion in June. Chip sales had already been down for Broadcom, so diversifying to software has made the most sense. CA’s infrastructure software is responsible for about 25% of total Broadcom revenues. Symantec or Tibco would potentially increase that amount.