Broadcom acquires Symantec's enterprise business
By MYBRANDBOOK
Broadcom acquires Symantec’s enterprise division for $10.7 billion in cash , according to a statement. This will scale up its software business through deals, with this acquisition it would accelerate Broadcom’s enterprise security business , which delivers more than $2 billion in annual revenue.
Symantec’s enterprise security unit offers a mix of security products and services to business and government customers, helping them improve their security, while reducing cost and complexity. Now onwards, Symantec, will be left with only consumer focused Norton LifeLock business. With this announcement the shares of Symantec rose 3.6% and Broadcom 2% in extended trading.
Broadcom said its expects the combination to result in more than $1 billion in run-rate cost synergies in the 12 months after the deal has closed, partly by eliminating redundancies. Broadcom said it will own and use Broadcom’s brand name after the deal closes.
Symantec said in a statement that it expects the deal close before the end of 2019. It plans to return of the proceeds of the deal after tax to investors as a $12-per-share special dividend after the deal closes. The company also intends to increase its dividend to 12.5 cents per share after the close.
M&A has played a central role in Broadcom’s growth strategy and this transaction represents the next logical step in our strategy,” Broadcom Chief Executive Officer Hock Tan said. This Broadcom and Symantec deal is expected to close in the first quarter of its fiscal year 2020 and is subject to regulatory approvals in the United States, European Union and Japan. It plans to raise fresh debt to fund the deal.
Symantec has been struggling with severe competition from various players into security and the smart start-up and sources said, the deal to sell entire company to Broadcom, didn’t workout over price negotiation. The next step is said, Symantec will have to do the haircut in the workforce by about 7% to 8%.
Broadcom last year acquired mainframe software company CA(one of the world’s leading providers of information technology (IT) management software and solutions) by paying almost $19 billion. The CA deal has helped Broadcom diversify its business. With this acquisition, there will be meaningful cross-selling opportunities with Brocade and CA solutions” as a result of the acquisition, says Broadcom CEO Hock Tan.
Post-acquisition, Broadcom could scale up , with the Symantec enterprise business which produces $2.3 billion in revenue in the 2019 fiscal year, or about half of the company’s total revenue. The segment sells software to help companies and governments detect attacks across devices and monitor the use of cloud services, among other things, will give a stiff competitions to the vendors including Cisco, Microsoft, Palo Alto Networks and Crowdstrike.
Happiest Minds brings in an innovative GenAI chatbot
Happiest Minds Technologies has announced the new GenAI chatbot - ‘hAPPI...
Government mandates encryption for CCTV cameras to ensure netw
In the wake of issuing an internal advisory on securing CCTV cameras at g...
TRAI recommends allowing only Indian entities to participate i
The Telecom Regulatory Authority of India (TRAI) has recommended that onl...
Galaxy AI is available on more devices with Samsung One UI 6.1
Samsung has expanded the range of smartphones to which One UI 6.1 and Gala...
TVS ELECTRONICS LTD.
VERSA NETWORKS INDIA PVT. LTD.
STERLITE TECHNOLOGIES LTD.
BEETEL TELETECH LTD.
Technology Icons Of India 2023: Dr. Sanjay Bahl
Sanjay Bahl is currently with the Indian Computer Emergency Response T...
Technology Icons Of India 2023: Roshni Nadar Malhotra
Roshni Nadar Malhotra is an Indian billionaire businesswoman and the c...
Technology Icons Of India 2023: Natarajan Chandrasekaran
Natarajan Chandrasekaran is the Chairman of the Board of Tata Sons, th...
C-DAC keeps India ahead in IT & Electronics R&D space
Centre for Development of Advanced Computing (C-DAC) is the premier R&...
DRDO is India's largest and most diverse research organisation
DRDO is the R&D wing of Ministry of Defence, Govt of India, with a vis...
Leading company into fertilizers in the country
NFL is a dynamic organization committed to serve the farming community...
ADITYA INFOTECH LTD.
Aditya Infotech Ltd. (AIL) – the technology arm of Aditya Group, is ...
IRIS GLOBAL SERVICES PVT. LTD.
Iris Global services is one of the leading distribution houses that d...
FORTUNE MARKETING PVT. LTD.
Delhi based Fortune Marketing, An ISO 9001:2008 company, distributes ...