Shares of Symantec have been on the rise this week due to rumors in the marketplace that the company may be acquired by Broadcom. The share price of Symantec rose to over $25 when it was reported that Broadcom may offer as much as $15 billion for the company during the course of the next few weeks.
Symantec is a company that makes its money in the area of cyber-security. The company has both a corporate and a retail division for its products. The general public is probably most aware of Symantec through its consumer products such as LifeLock and Norton Security. For this fiscal year, Symantec has seen revenues of approximately $4.7 billion.
Broadcom is a semiconductor manufacturer that has been in the news in recent years due to its attempt to purchae Qualcomm. Broadcom’s attempt to purchase Qualcomm was blocked by the US government.
If Broadcom does end up making a bid for Symantec, the move would see potential benefits for both companies. Symantec has seen its revenues deterioate over the course of the last few quarters. Symantec has also been plagued by changes in corporate leadership over the last few months.
Broadcom is seeking to find new sources of revenue. According to many analysts, Broadcom wants and needs to get into the software business as a way to hedge against the downturn in the Chinese market.
Broadcom has already made a sizeable purchase of another software firm. Broadcom purchased CA Technologies for for just under $19 billion about a year ago. It is believed that if Broadcom does purchase Symantec that Broadcom would integrate Symantec and CA Technologies into a single entity.
Symantec is not the only company that Broadcom is considering. If Broadcom is not able to come up with a deal for Symantec, Broadcom may seek to acquire Tibco. It is rumored that the investment group who recently purchased Tibco wants to sell it soon.