Broadcom Bets $10.7 Billion on Security and Synergy
It wasn't long ago that Broadcom (NASDAQ: AVGO), formed when Avago acquired the old Broadcom Corp. in 2016, was entirely focused on semiconductors. After the company's recent acquisitions, that's no longer the case.
The acquisitions of networking company Brocade in 2017 and mainframe solutions provider CA Technologies in 2018 have created a substantial software business within Broadcom. The company expects around 22% of its total revenue to come from software solutions in 2019. That percentage will rise further next year when Broadcom completes its recently announced acquisition of Symantec's (NASDAQ: SYMC) enterprise security business.
Broadcom announced on Aug. 8 that it had agreed to pay $10.7 billion in cash for Symantec's enterprise security business. On a pro forma basis, the deal will boost Broadcom's software solutions revenue up to 29% of total revenue. "The addition of Symantec's enterprise security portfolio will significantly expand Broadcom's infrastructure software footprint as it continues to build one of the world's leading infrastructure technology companies," reads Broadcom's press release announcing the deal.
Source Fool.com
