In full accordance with plans and without obstacles from the antitrust authorities, Broadcom Acquisition of the division of Symantec, engaged in the development of security tools for corporate computing platforms. The deal was announced in August of this year after very difficult negotiations.
Initially, Broadcom tried to acquire Symantec in its entirety for more than $15 billion. But Symantec's inflated self-esteem prevented this. After lengthy negotiations, the parties in a deal worth $10,7 billion, but it did not include Symantec consumer products and their development team (Norton antivirus, LifeLock solutions and others aimed at protecting personal data). Broadcom has retired the "Symantec" brand, enterprise data protection solution providers and related products.
At Symantec, the enterprise cybersecurity division generated much less revenue than client products. Over the past few years, through acquisitions, Symantec has been trying to build a business in the corporate cybersecurity segment. Nothing good came of it. Financial performance only worsened and led to changes in leadership.
Broadcom, on the other hand, sees the software market as a means to ease its dependence on semiconductor solutions. All these sanctions and trade wars with China have already crippled Broadcom's revenue and threaten to increase the impact on the company's earnings in the future. So if for Symantec the corporate division has become a "suitcase without a handle", then for Broadcom it will become a brick in the foundation of a software-oriented business. As a part of Broadcom division of Symantec will be headed by its former head Art Gilliland (Art Gilliland), a veteran with 20 years of experience.
The cornerstone of the new structure was Broadcom's $2018 billion purchase of CA Technologies in 18,9. Already this year, Broadcom expects to receive about $5 billion from sales of programs and services out of the expected revenue in the region of $22,5 billion this year. This is a good incentive to continue what we started. One can imagine that this is not the end of Broadcom's purchases in the field of software developers. Who will be next?
Source: 3dnews.ru