Broadcom is acquiring Symantec's enterprise security business for $10.7 billion in cash, the chip and cybersecurity companies confirmed today. The deal does not include Symantec's consumer Norton LifeLock business, which will continue forward on its own.
Symantec apparently plans to lay off about 7 percent of its staff before the deal closes.
In a prepared statement, Hock Tan, President and CEO of 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. Symantec's enterprise security business is recognized 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."
Symantec did not include its Consumer Cyber Safety business -- Norton LifeLock -- in the deal. That business is "steady, predictable and we believe can grow at mid-single digits, generating strong cash flow and earnings," the company said. The consumer offerings involve Device Security, Identity Threat Protection and Privacy software that protects consumers and small businesses.
The Norton LifeLock business is expected to grow revenue in the mid-single digits, with continued strong cash flow from operations and expanded earnings growth, the company indicated.
Symantec has struggled on multiple fronts in recent years. Former CEO Greg Clark resigned in May 2019 amid weak enterprise cybersecurity software revenues. Executive team departures over the past year have also included Symantec’s CFO, chief operating officer, chief marketing officer and the head of its go-to-market teams, Silicon Valley Business Journal noted in May. Board member Rick Hill has been interim president and CEO of the company since that time.