Broadcom to buy Norton antivirus parent company for United States dollars 10.7 billion

Broadcom to buy Norton antivirus parent company for United States dollars 10.7 billion

For that, Broadcom receives Symantec's enterprise-focused business unit and the Symantec brand; Symantec as-is will retain its consumer-focused business unit, which will go forward using the Norton brand name. Its 2018 acquisition of CA Technologies for £15.6 billion has now been followed by that of security software pioneer Symantec - though only the company's enterprise division, interestingly.

Apparently, Broadcom has made a string of acquisitions over the years.

The deal is subject to the usual regulatory approvals.

But now Broadcom has confirmed that it is to acquire the enterprise security business of Symantec.

"M&A has played a central role in Broadcom's growth strategy and this transaction represents the next logical step in our strategy following our acquisitions of Brocade and CA Technologies", said Broadcom President and CEO Hock Tan in a statement. Its product portfolio serves critical markets including data center, networking, enterprise software, broadband, wireless, storage and industrial.

Symantec stands to benefit greatly from the acquisition say analysts.

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Still, Symantec has a wide range of enterprise offerings as well as security operations centers. It is heading for revenues of $22.5 billion in fiscal 2019, but added that the deal would add $2 billion in revenues to the company's turnover when the deal is finalised.

Similarly, Symantec has been a market leader for decades in its core technology areas of endpoint security, web security, and data loss prevention, and enjoys both sustained customer relationships and sustained deployments, according to Art Gilliland, Symantec's EVP and GM of enterprise security. Symantec slightly missed its revenue expectation and warned that its fiscal 2020 results would be well below expectations (see: Symantec CEO Exits as Company Misses Earnings Forecast). The leadership change came as Symantec was also investigating an accounting irregularity involved a $13 million customer transaction incorrectly reported as revenue.

Rick Hill, Symantec's interim chief executive, said the deal gave the company a narrower, but clearer, focus on the consumer cybersecurity business, which includes Norton antivirus products.

Its offerings include its suite of consumer products, as well as Lifelock, a subscription service meant to help consumers detect identity theft incidents. The anticipated close is before the end of the year. The board of directors has approved an increase to the company's existing share repurchase authorization up to $1.6 billion. After the closure of the deal, the cyber-security specialist plans on returning the deal proceeds in the form of $12/share special dividend.

Following the sale of its enterprise business, Symantec plans to eliminate about $1.5 billion in stranded costs, which were costs previously absorbed by the enterprise business but remain with Symantec, Pilette said.

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