Broadcom buys Symantec for $15 billion
Last year, Broadcom failed to buy the company Qualcomm. At Broadcom Singapore roots. Although she had a headquarters in the U.S. and now pays taxes to the us Treasury, the sediment in the form of connections and relations of production in Southeast Asia has remained and can serve as an obstacle for the largest deals with American Broadcom chipmakers. Thus, in the last year, Broadcom switched to software developers. For example, after the failure with the absorption of Qualcomm it for $18.9 billion, is acquired by CA Technologies ? software developer for management of the IT infrastructure.
New purchase Broadcom for the software area has become a renowned developer of security solutions for platforms data Symantec. More precisely, according to the sources, the deal is already done, but the announcement delayed because of the holiday July 4 (U.S. independence Day). Perhaps on Monday.
The price can exceed $15 billion Is $6 billion less than if the transaction took place two years ago. The fact that over the last two years the financial position of Symantec deteriorated. In 2016, she made two acquisitions, the effect of which was rather negative than positive. For about $7 billion Symantec bought the company Blue Coat Systems and LifeLock. Subsequent failures in the receipt of revenue and profit has led to the depreciation of the Symantec stock and to the dismissal two months ago of the Director General Greg Clark (Greg Clark). Today, it has played into the hands of Broadcom, which will be able to save money on buying vending her asset.
On the news of the impending takeover by Symantec, shares of Broadcom have fallen in price at the value of about 4 %, which led to a decrease in the company’s capitalization by about $4 billion of Shares of the company Symantec was moving the opposite course. They jumped in price by 14% and increased the market value of the giant market for the security by $2 billion.
Interestingly, in the relatively recent past had done something similar, Intel bought McAfee. But Intel failed to integrate a software component on data protection and platforms of the processors, as planned, and she later sold to McAfee for a much smaller amount than they bought.