When the chips are down, it seems that Broadcom is determined to expand its software portfolio. If the informants are right, the chip designer is close to buying the security equipment inherited from Symantec for $ 15 billion.
According to Bloomberg, who was the first in the report, Broadcom is approaching the target and could confirm a purchase agreement in a matter of weeks. , although nothing has been signed or sealed yet.
The rationale, according to the report, is that Broadcom wants to go beyond the software with the greatest margin, almost a year after it knocked down CA Technologies for $ 18.9bn.
The news met with a mixed reaction: stock markets approved Symantec, and the price of its shares rose 18 percent in pre-market operations for today. As for Broadcom, its shares fell 4% in the last operations in the United States yesterday.
Broadcom has had a relatively hard run in its traditional markets since semiconductors fell 12% year-on-year in its first quarter of the fiscal & # 39; 20 ended on February 3 and fell 10 percent in the second quarter. In contrast, CA infrastructure software lines offered nothing but kindness.
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The company itself has driven consolidation in the chip sector, with Avago acquisitions before its Broadcom pomp, including those of LSI and Emulex.
Under CEO Hock Tan: the best paid executive in the US UU. in 2017 with $ 103.2 million: Broadcom made the failed launch of $ 117 billion to seize Qualcomm that was defeated by the US government. UU. for national security issues. Tan also made an offer for Mellanox, but Nvidia reached that agreement.
Broadcom has now moved its headquarters from Singapore to California to avoid problems similar to those faced by Qualcomm.
Tan's new reported goal, Symantec, claims to sell products and services to 350,000 companies and 50 million people. He has confidence in both commercial and consumer safety, but has faced countless challenges in the past 12 months.
In May, Symantec CEO Greg Clark resigned without a permanent aligned replacement, starting in the same way as his predecessor. 19659002] The company initiated an internal investigation in May 2018 following a complaint of accounting irregularities, and subsequently was subject to litigation by a shareholder.
Symantec revenues for fiscal year & # 39; 19 ended March 29 were reduced to $ 4,731 million from $ 4,834 Net and net profit dragged through the finish line at $ 31 million, in comparison with $ 1,138bn in the period of the previous year. The market capitalization of the company listed on NASDAQ is currently $ 13.66 billion.
We have asked Symantec and Broadcom to comment. ®
Balance consumerization and corporate control.