Broadcom: Symantec Acquisition Highlights Synergy Upside

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About: Broadcom Inc. (AVGO), NLOK
by: Mark Ashton
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Mark Ashton
Long/short equity, value
Summary

Broadcom announced a $10.7 billion cash-only deal to acquire Symantec’s Enterprise Security Business.

The deal is part of the company’s strategy to expand its infrastructure software footprint through a suite of integrated enterprise software solutions.

It is expected to be finalized in the first quarter of 2020.

The share price does not reflect the possible value to be unlocked from synergies in the software business.

Broadcom (AVGO) recently announced the acquisition of Symantec's (SYMC) enterprise security business; this will extend the company’s footprint into the infrastructure software space. The acquisition will increase the revenue contribution from