September 20, 2020

Broadcom spends $10.7 billion in cash to acquire Symantec Corp’s enterprise security unit

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Broadcom, the world’s leading chip manufacturer, has officially announced the acquisition of Symantec’s corporate business. Symantec is also a world-renowned security software developer. According to the announcement, Broadcom directly spent $10.7 billion in cash to complete the acquisition, rather than using the stock and cash portfolios traditionally used by listed companies. After the official announcement of the news, Broadcom’s share price did not fall but rose slightly, and Symantec’s share price surged in the temporary suspension of trading.

EU anti-monopoly Broadcom

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In recent years, Broadcom has launched a number of major acquisitions in the technology sector, the most well-known of which is the acquisition of Qualcomm but the final transaction was canceled. Symantec, originally a security company, mainly provides security services to governments and enterprises, such as helping these enterprises and institutions to guard against cyber attacks.

Today’s Symantec relies primarily on providing security services. For Broadcom, although it has not previously involved security services, Broadcom has a wide customer base that requires security services as an electronics manufacturer. After acquiring Symantec’s corporate business, Broadcom can expand its security business to a large extent as a new source of revenue for Broadcom’s electronics manufacturing.

Source: Reuters