The chipmaker, Broadcom is all set to buy a large share of the cybersecurity company Symantec Corporation for $10.7 billion in cash. With this deal, Broadcom is now all set to diversify beyond its main memory-chip business. This will become the second company that is acquired by Broadcom after network equipment maker Brocade in the year 2017.
Symantec (SYMC) is the largest cybersecurity company in America which designs anti-virus to thwart cyber threats with its cloud technology. Broadcom is all set to acquire the share by 2020, and it is expected that the revenue of the company will increase from 22% to 29% by the end of 2021. “Broadcom aims to build one of the world's leading infrastructure technology companies across hardware and software,"stated the CEO Hock Tan.
The firm has proposed the acquisition bid of $117 billion to buy Symantec and is waiting for the approval of the US government. But Symantec will remain separate, in the field of consumer business and will be rebranded. "It is clear that the US-China trade conflict including the Huawei export ban is creating economic and political uncertainty and reducing visibility for global customers," Broadcom's Tan said.
With Broadcom acquisition, the US-China trade war is again unfurled. Now China is all set to rebrand the Symantec Corporation and is trying to tie up with the world’s biggest cybersecurity company McAfee, and is all set to pen down the deal very soon, stated the government of the Republic of China.