Investors are still split on the merits of Broadcom’s (AVGO)
2018 acquisition of CA, but Broadcom management apparently isn’t
letting those concerns get in the way of their strategic plans. To that
end, Bloomberg is reporting that Broadcom is in advanced discussions to acquire Symantec (SYMC) at an enterprise value of over $15 billion.
The
key attraction of Symantec would be similar to that of CA – high
operating margins and theoretically consistent free cash flows, boosted
by Broadcom’s aggressive cost-reduction efforts. That argument makes
sense to a point, but given the challenges Symantec has seen in its
business and the lack of a “moat” relative to CA, I expect this deal to
be even less popular with some investors, not that that will dissuade
CEO Hock Tan from following his plan.
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Broadcom Reportedly Ready For Another Enterprise Software Acquisition
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