Broadcom has completed the acquisition of Symantec's enterprise division

In full accordance with the plans and without obstacles from antitrust authorities, Broadcom completed acquired the division of Symantec engaged in developing enterprise computing platform security solutions. The deal was announced in August of this year after very difficult negotiations.

Initially, Broadcom tried to acquire Symantec entirely for over $15 billion. However, Symantec's inflated self-assessment prevented this. After lengthy negotiations, the parties settled on a transaction worth $10.7 billion, but it did not include Symantec's consumer products and the team responsible for them (Norton antivirus, LifeLock solutions, and others aimed at personal data protection). The 'Symantec' brand, along with enterprise data protection solutions and related products, has moved to Broadcom.

Within Symantec, the enterprise cybersecurity solutions division generated much less revenue than the consumer products. In recent years, Symantec attempted to build a business in the enterprise cybersecurity segment through acquisitions. However, this effort has not yielded fruitful results. Financial performance only deteriorated, leading to changes in leadership.

For Broadcom, conversely, the software market presents a means to reduce dependence on semiconductor solutions. All these sanctions and trade wars with China have already hurt Broadcom's revenue and threaten to further impact the company's income in the future. Thus, if for Symantec the enterprise division became a 'suitcase without a handle', for Broadcom it will serve as a building block in its software-oriented business. Within Broadcom, the Symantec division will be led by its former head, Art Gilliland, a veteran with 20 years of experience.

A cornerstone of this new structure was Broadcom's purchase of CA Technologies in 2018 for $18.9 billion. This year, Broadcom expects to generate about $5 billion from software and services sales out of an anticipated revenue of around $22.5 billion. This is a good incentive to continue what has begun. One can imagine that Broadcom's acquisitions in the software developer sector will not stop here. Who will be next?

Source: 3dnews.ru