Symantec sells off enterprise security unit for $10.7 billion

According to Broadcom, the addition of Symantec’s enterprise security portfolio will significantly expand its infrastructure software footprint as it …

Symantec has sold off its enterprise security business to chipmaker Broadcom in a deal worth $10.7 billion.enterprise security, Symantec

According to Broadcom, the addition of Symantec’s enterprise security portfolio will significantly expand its infrastructure software footprint as it continues to build one of the world’s leading infrastructure technology companies.

Hock Tan, president and CEO, Broadcom, said, “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.”

He noted that Symantec is recognised as an established leader in the growing enterprise security space and has developed some of the world’s most powerful defense solutions that protect against today’s evolving threat landscape and secure data from endpoint to cloud.

“We look forward to expanding our footprint of mission critical infrastructure software within our core Global 2000 customer base,” Tan added.

With product lines across endpoint security, web security services, cloud security and data loss prevention, Symantec’s enterprise security business offers its customers a best-in-class suite of integrated solutions. Deploying Symantec’s enterprise security suite through Broadcom’s channels will strengthen its differentiated portfolio license agreement (PLA) strategy of offering significant overall savings to customers, while creating a predictable, recurring revenue stream for its business that will drive returns for shareholders.

Under the terms of the asset purchase agreement, which has been approved by the Broadcom Board of Directors, Broadcom will pay Symantec $10.7 billion in cash at closing. Broadcom intends to fund the transaction with proceeds from new committed debt financing.

The transaction, which is expected to close in the first quarter of Broadcom’s fiscal year 20201, is subject to regulatory approvals in the US, EU and Japan and other customary closing conditions.

Following the closing of the transaction, Broadcom will own and incorporate the Symantec brand name into the Broadcom portfolio.

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Broadcom to Buy Symantec’s Enterprise Security Business for $10.7B

Chipmaker Broadcom has entered into an agreement to acquire the enterprise security business of Symantec Corporation for $10.7 billion. The deal is …
Broadcom to Buy Symantec's Enterprise Security Business for $10.7B

Chipmaker Broadcom has entered into an agreement to acquire the enterprise security business of Symantec Corporation for $10.7 billion.

The deal is part of a larger effort on Broadcom’s part to diversify its business, with the company aiming to become a leading global provider of IT infrastructure solutions across both hardware and software. The acquisition follows Broadcom’s recent acquisitions of data center and networking solutions specialist Brocade, and of mainframe software specialist CA Technologies.

Symantec specializes in digital security and antivirus software, and has promoted post-password authentication solutions; as part of Broadcom, its enterprise security division will be branded “Norton Lifelock”.

As Forbes reports, Symantec’s enterprise security division generated about 50 percent of its revenues in its most recent fiscal quarter, at $2.5 billion, but was responsible for only 10 percent of its operating income. Speaking with Wall Street analysts after the announcement of Broadcom’s acquisition deal, Symantec CEO Rick Hill emphasized that Broadcom is offering “$10.7 billion in cash for approximately 10% of our operating income.”

The deal’s announcement comes after the US government blocked Broadcom’s attempt to acquire Qualcomm last year over national security concerns. It also arrives at a volatile time given the escalating trade war between the US and China, but with Broadcom having relocated its headquarters from Singapore to San Jose last year, the company’s proposed acquisition will not be subject to the US’s Committee on Foreign Investment, though it is still subject to antitrust approval, as CNN Business notes.

Sources: Forbes, CNN Business

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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 …

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.

Betting on synergy

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.

Broadcom expects the new assets to drive more than $2 billion of sustainable run-rate revenues. The company reaffirmed its fiscal 2019 guidance alongside the deal announcement, which calls for revenue of $22.5 billion. Once the deal closes in the first quarter of fiscal 2020, it will boost Broadcom’s pro forma annual revenue to $24.6 billion.

The key to this deal for Broadcom is synergy. The stand-alone Symantec enterprise security business is expected to produce about $350 million of earnings before interest, taxes, depreciation, and amortization in fiscal 2019. If that remained unchanged after the acquisition, Broadcom would be paying a staggering 30 times EBITDA.

But Broadcom is only paying a little more than 8 times expected EBITDA, based on its synergy assumptions. Broadcom expects to reduce run-rate costs by $1 billion within 12 months of closing this deal, which would boost run-rate EBITDA of the new security assets to around $1.3 billion. The company plans to reduce costs by eliminating redundancies, refocusing R&D and support efforts to the highest-return-on-investment opportunities, and integrating and rationalizing the sales force. Layoffs, in a word.

Scissors cutting a piece of paper with the word costs written on it.Scissors cutting a piece of paper with the word costs written on it.
Scissors cutting a piece of paper with the word costs written on it.

Image source: Getty Images.

Paying for the deal

Broadcom will finance the all-cash acquisition with new committed debt financing, which will add to the mountain of debt Broadcom has accumulated from its various acquisitions. At the end of the fiscal second quarter, Broadcom’s total debt had reached $37.5 billion.

Broadcom will stick to its current dividend policy of paying shareholders 50% of prior-year free cash flow, but it’s swapping priorities for cash beyond the dividend. Excess cash flow will now be used to pay down debt, with share buybacks taking a back seat. The company intends on maintaining its investment-grade credit rating.

Whether the Symantec deal works out depends on whether Broadcom can successfully cut $1 billion of costs without sacrificing the competitiveness of the products it’s acquiring. The enterprise security market has no shortage of competition — Symantec’s security business competes with fast-growing companies like CrowdStrike and Zscaler, as well as larger players like Cisco and FireEye. There may be plenty of fat that can be cut at Symantec’s security business, but Broadcom risks going too far and hurting sales as a result.

Broadcom is scheduled to report its fiscal third-quarter results on Sept. 12 after the market closes. Expect management to further flesh out its strategy during the earnings call.

Timothy Green owns shares of Cisco Systems. The Motley Fool owns shares of and recommends Zscaler, Inc. The Motley Fool recommends Broadcom Ltd and FireEye. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com

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Endpoint Security Market attain a value of US$27.83 bn by the end of the period of the forecast

Kaspersky Lab, Cisco, Palo Alto Network, Ivanti, AVAST Software, RSA, Longview Solutions, Promisec, Fortinet, G2 Crowd, Lookout, Klogix Security, …

According to a new study by Persistence Market Research (PMR), the competitive landscape prevalent in the global end-point security market is characterized by the rivalry between the leading vendors, such as Symantec, Trend Micro, Sophos, Intel, IBM, Microsoft, Checkpoint Software, Kaspersky Lab, Cisco, Palo Alto Network, Ivanti, AVAST Software, RSA, Longview Solutions, Promisec, Fortinet, G2 Crowd, Lookout, Klogix Security, and Doyen infosolutions. With the increasing number of new entrants, the competition within this market likely to intensify further, states the research report.

Request for Report [email protected]https://www.persistencemarketresearch.com/10900

As per the research study, the global end-point security market will present an opportunity of over US$11.9 bn by 2017 end. Further, the market is expected to report a rise at an exponential CAGR of 11.20% over the period from 2017 to 2025 and attain a value of US$27.83 bn by the end of the period of the forecast.

Rising Demand for Advanced Security Solutions to Boost Global End-point Security Market

“The global market for end-point security is witnessing tremendous growth, thanks to the continuous demand for advanced security solutions,” says a PMR researcher. The rising requirement to update security solutions regularly is anticipated to boost the demand for end-point security solutions in the years to come.

Apart from this, the increasing awareness among consumers pertaining to the ransom-ware attacks is also projected to trigger the need to install efficient end-point security solutions to safeguard their businesses over the next few years. However, the high cost associated with these security solutions and the dearth of awareness among end users in emerging economies pertaining to their benefits may restrict this market from growing smoothly in the near future, notes the study.

North America to Lead Global End-point Security Market

The research report also offers a geographical assessment of the global end-point security market. As per the study, the Middle East and Africa, Latin America, Europe, Asia Pacific, and North America are the prominent regional markets for end-point cyber security across the world. North America, among all, is anticipated to lead the worldwide market for end-point security in the near future, with revenues increasing to US$12.30 bn by 2025. The government-led initiatives to fight against security threats are likely to promote the usage of end-point security solutions in this region over the next few years, reflecting positively on this market.

Request for Report Table of Content (TOC) @ https://www.persistencemarketresearch.com/10900

The swift expansion of businesses in Asia Pacific has spiked the usage of end-point devices in enterprises and organizations. With the heavy utilization of these devices and increased uptake of IoT applications has made enterprise networks more complex in this region, creating a significant need for end-point security, which is the main factor behind the rising market for end-point security in Asia Pacific. Europe is also reporting a healthy rise in its market for end-point security, thanks to the progressive adoption of end-point security solutions in order to eradicate spills of critical information in countries, such as U.K. The increasing support from the governments in terms of funds to upgrade their IT infrastructure is anticipated to support the Europe market for end-point security in the near future.

Across the world, end-point security solutions are mostly deployed on-premise, owing to which, the on-premise deployment segment is projected to lead the global market throughout the forecast period, with revenue reaching US$17.30 bn by 2025 end, states the market report.

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Starboard Value LP Raised Its Symantec (SYMC) Position by $252.98 Million; Girard Partners LTD …

Some Historical MSFT News: 30/04/2018 – Lightspeed Venture Partners Says Microsoft Chairman John Thompson Joining as a Venture Partner; …

Symantec Corporation (NASDAQ:SYMC) Logo

Starboard Value Lp increased its stake in Symantec Corp (SYMC) by 46.93% based on its latest 2019Q1 regulatory filing with the SEC. Starboard Value Lp bought 11.50M shares as the company’s stock declined 9.60% . The hedge fund held 36.00 million shares of the prepackaged software company at the end of 2019Q1, valued at $827.66M, up from 24.50 million at the end of the previous reported quarter. Starboard Value Lp who had been investing in Symantec Corp for a number of months, seems to be bullish on the $15.90 billion market cap company. The stock increased 0.31% or $0.07 during the last trading session, reaching $22.99. About 29.21M shares traded or 205.99% up from the average. Symantec Corporation (NASDAQ:SYMC) has risen 6.15% since August 11, 2018 and is uptrending. It has outperformed by 6.15% the S&P500. Some Historical SYMC News: 30/05/2018 – SYMANTEC CORP FILES FOR NON-TIMELY 10-K – SEC FILING; 15/03/2018 – In a first, U.S. blames Russia for cyber attacks on energy grid; 11/05/2018 – Symantec: No Safety Margin — Heard on the Street; 10/05/2018 – SYMANTEC CORP – QTRLY NON-GAAP REVENUE $1.234 BLN, UP 5% YEAR-OVER-YEAR; 14/05/2018 – SYMANTEC – WILL HOST CONF CALL TO ALSO PROVIDE FURTHER DETAIL ON CO’S FINANCIAL RESULTS & OUTLOOK; 14/05/2018 – SYMANTEC: GUIDANCE MAY CHANGE BASED ON OUTCOME OF INVESTIGATION; 11/05/2018 – Symantec had its worst day in 17 years, falling more than 30% amid an internal audit for possibly issuing “materially misleading business information to the investing public.”; 10/05/2018 – SYMANTEC CORP – CONTACTED SECURITIES AND EXCHANGE COMMISSION TO ADVISE IT THAT AN INTERNAL INVESTIGATION IS UNDERWAY; 13/03/2018 CAFC: TRUSTEES OF COLUMBIA v. SYMANTEC CORPORATION [RULE 36 JUDGMENT] – Appeal #16-2551 – 2018-03-13; 10/05/2018 – Symantec Says It Has Contacted SEC Regarding Investigation

Girard Partners Ltd increased its stake in Microsoft Corp Com (MSFT) by 4.02% based on its latest 2019Q1 regulatory filing with the SEC. Girard Partners Ltd bought 4,860 shares as the company’s stock rose 6.56% . The institutional investor held 125,652 shares of the prepackaged software company at the end of 2019Q1, valued at $14.82M, up from 120,792 at the end of the previous reported quarter. Girard Partners Ltd who had been investing in Microsoft Corp Com for a number of months, seems to be bullish on the $ market cap company. The stock decreased 0.85% or $1.18 during the last trading session, reaching $137.71. About 23.47M shares traded. Microsoft Corporation (NASDAQ:MSFT) has risen 29.33% since August 11, 2018 and is uptrending. It has outperformed by 29.33% the S&P500. Some Historical MSFT News: 30/04/2018 – Lightspeed Venture Partners Says Microsoft Chairman John Thompson Joining as a Venture Partner; 26/03/2018 – FACTBOX-Companies pull Facebook ads on data privacy concerns; 08/03/2018 – DATA#3 – SELECTED BY DIGITAL TRANSFORMATION AGENCY AS SOLE PROVIDER OF MICROSOFT LICENSING SOLUTIONS TO AUSTRALIAN GOVERNMENT; 27/03/2018 – Starr Companies Announces Agreement with SkyWatch for Aviation lnsureds; 29/03/2018 – MICROSOFT – INVESTING IN STRATEGIES, TOOLS FOR DETECTING & ADDRESSING BIAS IN Al SYSTEMS & IMPLEMENTING NEW REQUIREMENTS ESTABLISHED BY GDPR; 02/05/2018 – Ingram Micro and Microsoft Announce Strategic Alliance to Accelerate Service Providers’ Digital Transformation With the CloudBlue Platform; 14/05/2018 – Insight lllustrates the Power of Microsoft’s New Azure Sphere Solution; 15/03/2018 – Limelight Networks Helps Companies Defend against Cyber Threats with New Bot Management Solution; 09/04/2018 – Ittiam Licenses its i265 HEVC Codec to Microsoft Azure to Offer High Quality Video Encoding and Decoding Services; 26/04/2018 – MICROSOFT CEO SAYS LINKEDIN RESULTS AHEAD OF EXPECTATIONS

Since February 14, 2019, it had 0 buys, and 2 insider sales for $1.47 million activity. 18,321 shares valued at $422,327 were sold by Cappellanti-Wolf Amy L. on Thursday, February 14.

More notable recent Symantec Corporation (NASDAQ:SYMC) news were published by: Nasdaq.com which released: “Technology Sector Update for 07/15/2019: SYMC,AVGO,ZM,MFGP – Nasdaq” on July 15, 2019, also Seekingalpha.com with their article: “Symantec Q1 2020 Earnings Preview – Seeking Alpha” published on August 07, 2019, Streetinsider.com published: “Symantec (SYMC) Gains Pre-Market on Report of Broadcom (AVGO) Financing, DealReport Friday Said Broadcom has $23B Financing – Bloomberg – StreetInsider.com” on July 15, 2019. More interesting news about Symantec Corporation (NASDAQ:SYMC) were released by: Businesswire.com and their article: “Symantec to Announce Fiscal First Quarter 2020 Results on August 8, 2019 – Business Wire” published on July 17, 2019 as well as Nasdaq.com‘s news article titled: “Stock Market Today: Bears and Bulls Have Both Won — Now What? – Nasdaq” with publication date: August 08, 2019.

Investors sentiment increased to 1.23 in Q1 2019. Its up 0.04, from 1.19 in 2018Q4. It increased, as 29 investors sold SYMC shares while 120 reduced holdings. 42 funds opened positions while 141 raised stakes. 551.58 million shares or 0.15% less from 552.40 million shares in 2018Q4 were reported. Fin Services reported 0% in Symantec Corporation (NASDAQ:SYMC). Moreover, Zurcher Kantonalbank (Zurich Cantonalbank) has 0.04% invested in Symantec Corporation (NASDAQ:SYMC). Beutel Goodman & stated it has 0.68% in Symantec Corporation (NASDAQ:SYMC). Moreover, Arrowstreet Capital Partnership has 0.02% invested in Symantec Corporation (NASDAQ:SYMC) for 321,975 shares. Martin Com Tn stated it has 1.39% in Symantec Corporation (NASDAQ:SYMC). Bbt Cap Management Lc holds 0.74% in Symantec Corporation (NASDAQ:SYMC) or 25,783 shares. Farmers And Merchants Invs owns 322 shares or 0% of their US portfolio. Moody Savings Bank Division has 0% invested in Symantec Corporation (NASDAQ:SYMC). Texas Permanent School Fund has invested 0.05% of its portfolio in Symantec Corporation (NASDAQ:SYMC). Ls Inv Advsrs Limited Liability reported 32,323 shares. Royal London Asset Mngmt Limited holds 261,966 shares or 0% of its portfolio. Acadian Asset Mgmt Limited Liability Com holds 2,083 shares or 0% of its portfolio. Fukoku Mutual Life Insur Co holds 0.01% in Symantec Corporation (NASDAQ:SYMC) or 4,500 shares. Invsts invested in 0.21% or 37.19 million shares. Strategic Global Advisors Limited has invested 0.07% in Symantec Corporation (NASDAQ:SYMC).

Investors sentiment decreased to 0.91 in 2019 Q1. Its down 0.03, from 0.94 in 2018Q4. It is negative, as 64 investors sold MSFT shares while 922 reduced holdings. 159 funds opened positions while 742 raised stakes. 5.41 billion shares or 1.21% less from 5.48 billion shares in 2018Q4 were reported. 825,995 are owned by Rathbone Brothers Public Ltd Co. Polen Capital Ltd Llc owns 15.18 million shares or 9.36% of their US portfolio. Palisade Asset Mngmt Limited Liability Corporation invested 3.4% of its portfolio in Microsoft Corporation (NASDAQ:MSFT). Loews Corp accumulated 120,200 shares. Oak Associates Oh has invested 2.24% in Microsoft Corporation (NASDAQ:MSFT). David R Rahn & Associate invested in 0.47% or 4,733 shares. Burke & Herbert Commercial Bank owns 30,539 shares or 3.19% of their US portfolio. Torray Ltd has invested 2.43% in Microsoft Corporation (NASDAQ:MSFT). Jaffetilchin Investment Prtn Limited Liability reported 9,029 shares stake. Signalpoint Asset Limited Com stated it has 1.81% in Microsoft Corporation (NASDAQ:MSFT). Northwest Counselors Limited Liability owns 80,044 shares. Bnp Paribas Arbitrage invested 0% of its portfolio in Microsoft Corporation (NASDAQ:MSFT). Thomasville Commercial Bank accumulated 224,385 shares or 4.88% of the stock. Meritage Group Inc Limited Partnership reported 2.57 million shares stake. Doheny Asset Ca holds 7,781 shares.

Symantec Corporation (NASDAQ:SYMC) Institutional Positions Chart

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