The chipmaker Broadcom has committed to buy Symantec’s enterprise security unit for $10.7 billion. Mergers and acquisitions have played a big role in Broadcom’s growth as an international player and this acquisition will help it expand its customer base further.
Shares of both Broadcom and Symantec rose in trading as the news of the acquisition broke.
Commenting on the acquisition plan, Hock Tan, President and CEO of Broadcom said: “Symantec's enterprise security business is recognized as an established leader in the growing enterprise security space and has developed some of the world's most powerful defense solutions that protect against today's evolving threat landscape and secure data from endpoint to cloud. We look forward to expanding our footprint of mission-critical infrastructure software within our core Global 2000 customer base”
The deal is expected to close in the first quarter of Broadcom’s fiscal year 2020. Full payment of the acquisition will happen in cash. The deal is subject to regulatory approvals in the U.S., EU, and Japan. Broadcom plans to raise fresh debt to fund the multi-billion dollar deal. After the transaction is closed, Broadcom will own and incorporate Symantec’s brand name into its portfolio.