Broadcom in discussions to purchase Symantec
According to reports familiar with the matter, Chipmaker Broadcom Inc is in recent discussions to purchase cybersecurity business Symantec Corp as Broadcom seeks to diversify beyond semiconductors.
Symantec‘s shares rose 22% in after-hour trading, while Broadcom dropped 4%.
A agreement would extend the thrust of Broadcom into software a year after purchasing U.S. business software firm CA Inc. from its US$ 18.9 billion agreement. It also supports the unsuccessful offer by Broadcom to purchase Qualcomm Inc. A spokesman for Symantec said the firm was not commenting on conjecture. Broadcom wasn’t accessible for discussion promptly.
Through a sequence of exciting deals, Broadcom’s chief executive, Hock Tan, has constructed the business. As Avago’s CEO, Tan stepped off Broadcom’s $37 billion takeover, putting the two businesses under Broadcom’s umbrella title.
Following Intel Corp’s purchase of California-based McAfee in 2011, a Broadcom-Symantec agreement would be the second significant acquisition by a chipmaker of a cyber security supplier. However, after a unsuccessful attempt to gain a significant role in the software safety company, Intel purchased a significant interest in McAfee to equity company TPG.
Symantec was an early computer security player but faces increasing rivalry.
The business, whose accounting irregularity is being researched by U.S. authorities, has seen a slew of important corporate departures since early last year, including CEO Greg Clark, who walked down suddenly in May. Symantec said it would reduce 8% of its workers globally in August last year after it slashed its projected income.
The latest problems of the anti-virus software maker have struck its inventory, which has dropped more than a quarter of its worth from a peak of US$ 34.20 in August 2017 as of closing Tuesday.