The chipmaker Broadcom is buying Symantec’s security portfolio business for an all-cash deal. It’s expanding its software footprint by acquiring its business in an effort to become the world’s leading infrastructure company. Broadcom shares were up by 1% while Symantec shares rose by 5%.
According to CBNC, the speculation of the deal emerged last month. According to the people close to the matter, Broadcom attempted to buy off all Symantec but settled for the business that generated $5 Billion in revenue. Its all over debt is about $107.6 billion as compared to $2 Billion Symantec debt.
Hock Tan, President, and CEO of Broadcom said mentioned in a press release that “M&A has played a central role in Broadcom’s growth strategy and this transaction represents the next logical step in our strategy following our acquisitions of Brocade and CA Technologies.”
The company has been a powerhouse for semiconductor and infrastructure-related solutions have been criticized by Mr. Trump. Since then the company shifted its headquarters from Singapore to the U.S. Well, its been on a buying spree for the years but failed to buy Qualcomm for $100 Billion but the President blocked the deal.
Last year, Broadcom bought software firm CA Technologies, formerly Computer Associates for $19 Billion. The company is expected to add about $3.5 Billion in revenue. In the past, the chipmaker and software company deal hadn’t produced the desired deals.
Intel acquired McAfee in 2010 for $7.68 Billion but it never combined with Intel products. It had been running as an independent entity. While Hon Tan believes that the acquisition will enhance to build its semiconductor business.
“Symantec’s enterprise security business is recognized as an established leader in the growing enterprise security space and has developed some of the world’s most powerful defense solutions that protect against today’s evolving threat landscape and secure data from endpoint to cloud,” Mr. Tan said.