Broadcom Eye Acquiring Shaky Symantec
US chipmaker Broadcom is reportedly in advanced talks to buy cyber security company Symantec, looking to strike at an unstable time for the company in a bid to further diversify into software.
According to Bloomberg, the companies could reach an agreement within weeks, citing anonymous sources “familiar with the matter”.
Broadcom is seeking growth through acquisitions, and set its sights on Symantec after a bid to acquire fellow US semiconductor company Qualcomm was blocked by President Donald Trump over national security risks.
Last year Broadcom paid almost US$19 billion for business software company CA Inc.
If the deal with Symantec goes through Broadcom would become the second chipmaker to acquire a cyber security company, after Intel took over McAfee in 2011.
Symantec is the world’s biggest cybersecurity company, but the past year has been volatile.
The company has lost its CEO Greg Clark, announced it would cut 8 per cent of its worldwide workforce and reduced its revenue forecast.
Its shares surged on the news yesterday, closing up almost 14 per cent at $25.10, rising to $25.25 after hours