Business

Symantec to be bought by Broadcom

Symantec to be bought by Broadcom: As chipmaker Broadcom Inc seeks to diversify beyond semiconductors, it is in advanced talks to buy cybersecurity firm, Symantec Corp, according to sources familiar with the matter. A year after its $18.9 billion (15 billion pounds) deal to buy U.S. business software company CA Inc, this deal would expand the chipmaker’s push into software. It also follows Broadcom’s failed bid  to buy Qualcomm Inc.

Broadcom’s Chief Executive Officer Hock Tan has built the company through a series of ambitious deals https://reut.rs/2XnqvWO. As CEO of Avago, Tan pulled off the acquisition of Broadcom for $37 billion, bringing the two companies under one umbrella name of Broadcom.

Following computer processor maker Intel Corp bought California-based McAfee in 2011A, Broadcom-Symantec deal would be the second major acquisition of a cybersecurity provider by a chipmaker. However, after a failed effort to stake out a major position in the computer security business, Intel sold a majority stake in McAfee to investment firm TPG.

Symantec was an early leader in computer security but is facing growing competition.

The company, which is being investigated by U.S. regulators over an accounting irregularity, has seen a slew of key executive departures since late last year, including CEO Greg Clark, who abruptly stepped down in May. In August last year, Symantec said it would cut 8% of its workforce worldwide after it slashed its revenue forecast.

The anti-virus software maker’s recent troubles have hit its stock, which as of Tuesday’s close has lost over a third of its value from a high of $34.20 in August 2017.

News of the talks between Broadcom and Symantec were first reported by Bloomberg.

While Symantec spokesperson said that the company does not comment on speculation, Broadcom was not immediately available for comment.