After the US stock market closed on Thursday, Broadcom officially announced the acquisition of Symantec's corporate business for $10.7 billion in cash.
It is reported that after the announcement, Broadcom shares rose 1% in after-hours trading; Symantec stocks were suspended after the close, but rose 5% when trading resumed in a few hours.
Broadcom has been making acquisitions for many years. The company tried to buy chip maker Qualcomm for more than $100 billion, but it ended in failure because US President Trump intervened and blocked the deal. After that, Broadcom acquired the software company CA Technology for nearly $19 billion. The deal with CA Technology helped Broadcom achieve business diversification.
The acquisition marks the second biggest bet on software after Broadcom acquired CA Technology.
Broadcom said the acquisition is expected to generate $2 billion in continuing revenue and is expected to achieve more than $1 billion in operating cost synergies in the 12 months after completion.
Symantec said in a statement that the deal is expected to be completed by the end of 2019.
In fact, there have been rumors about the news that Broadcom wants to acquire Symantec. However, according to reports in mid-July, due to differences in transaction prices, Broadcom’s acquisition of Symantec’s trading negotiations has been terminated. Before the negotiations broke down last month, Broadcom had been discussing the purchase of the entire Symantec company.
After the negotiations broke down, the two sides resumed discussions, and Broadcom adjusted its acquisition of Symantec to focus on acquiring the Symantec enterprise business that serves the enterprise.