IT'S OFFICIAL: US chipmaker Broadcom has scooped up Symantec's enterprise security biz for $10.7bn (£8.8bn).
Chatter about a potential deal first cropped up last month, with reports claiming Broadcom could splurge as much as $15bn on Symantec as it looks to plump-up its software portfolio. Later that month, however, it was reported that Symantec had suspended takeover talks with Broadcom over a disagreement on price after the chipmaker lowered its bid by more than $1 per share.
It looks like the firms have kissed and made up, as they announced on Thursday that a $10.7bn takeover had been agreed.
The deal, which includes the Symantec name, is the "next logical step" for Broadcom following its acquisitions of Brocade and CA Technologies, the company reckons, and will help it to expand its enterprise software offering; currently, the company faces stiff competition in the market offering protection to mobile devices and is absent from areas such as security forensics and investigation.
Hock Tan, president and CEO of Broadcom, added: "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 defence solutions that protect against today's evolving threat landscape and secure data from endpoint to cloud.
"We look forward to expanding our footprint of mission-critical infrastructure software within our core Global 2000 customer base."
Symantec, which on Thursday announced that its enterprise business raked-in $2.3bn in revenue in the 2019 fiscal year, said it will retain its consumer-facing product portfolio, which includes the LifeLock identity-protection brand and Norton antivirus software.
"Symantec has a long history of offering unparalleled cyber technology," quipped Daniel H. Schulman, chairman of the Symantec Board of Directors.
"It is a testament to our market leadership and dedication to the mission of making the world a safer place, that Broadcom has chosen Symantec's Enterprise Security assets to expand their reach into cybersecurity.
Broadcom expects the acquisition to close in the first fiscal quarter of 2020, though it's still subject to antitrust approval. µ
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