Broadcom has reached an agreement with Symantec to acquire the business portion of the security company. Broadcom will pay $10.7 billion for this. The companies expect the acquisition to be completed next year.
With the acquisition, Broadcom will own Symantec Enterprise Security Business and also acquire the rights to the Symantec brand name. The portion of Symantec that focuses on consumer software will continue to exist, but may no longer use the name.
Symantec’s consumer portfolio consists of Norton LifeLock and the company wants to grow with it. Symantec will restructure as a result of the acquisition and will lay off 7 percent of its staff. The software company announced this during the presentation of the quarterly figures. Symantec’s business unit generated revenue of $2.3 billion in the past fiscal year. That was about half of the company’s total revenue.
The acquisition of Symantec by Broadcom was already expected; the companies had been talking to each other for some time. Broadcom expects the acquisition to close in the first quarter of its fiscal year 2020. The companies are still awaiting final approval by authorities and authorities.
Last year, Broadcom made another major acquisition. The chipmaker then acquired software company CA Technologies for $ 18.9 billion. With the acquisitions, Broadcom wants to expand its activities and focus on software in addition to hardware.