Symantec stops takeover calls with Broadcom

Symantec has stopped the takeover talks with Broadcom. The two companies could not agree on the price, say insiders to Reuters.

According to the sources, it is not entirely clear why the price negotiations have collapsed. Last week, Broadcom wanted to offer $28.25 per share, while Symantec wanted more than $28 per share. Broadcom was hoping to sign a deal with the security company on Monday. So that didn’t happen.

Symantec problems

However, the acquisition may be very welcome for Symantec, as the company has faced several challenges in the past year. The CEO unexpectedly stepped down, consumer interest in the antivirus solution declined and competition increased.

The sources therefore state that it is possible that the conversations will continue anyway. Symantec does have a history, however, in which it investigates a sale, after which it runs away.

Last year, for example, the company investigated the possibility of becoming completely private before making a deal with Starboard Value, according to the sources. In addition, there were negotiations with private equity company Thoma Bravo about a sale.

New step into the software market

The news that Broadcom would be interested in Symantec appeared earlier this month. Sources then told Bloomberg that the negotiations were at an advanced stage, and that Broadcom was willing to pay over 15 billion dollars for the security company.

The acquisition will enable Broadcom to further expand its presence in the software market. Symantec already has a large presence in the market. The security company now provides products and services to over 350,000 organizations and 50 million people. Broadcom would then be able to take over the business.

Analyst Stacy Rasgon of Bernstein says to Reuters that the deal is not a problem for Broadcom. Broadcom buys software companies, that’s their strategy. If this falls apart, they’ll buy something else at some point.