REUTERS: Chipmaker Broadcom Inc is buying Symantec Corp's enterprise security business for US$10.7 billion in cash, the antivirus software maker said on Thursday.
Broadcom said the 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.The deal is a shot in the arm for Broadcom, which has been trying diversify into software business since last year when it bought U.S. business software maker CA Inc for US$18.9 billion.
"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. Its push to software came after a failed attempt last year to buy mobile chipmaker Qualcomm Inc for US$117 billion, which was scuttled by the Trump administration, citing national security concerns.
Symantec is struggling with severe competition from nimbler rivals. Several top executives, including CEO Greg Clark, have left the company this year, while it is also being investigated by U.S. regulators over an accounting irregularity.