|Bid||23.50 x 2900|
|Ask||23.54 x 2200|
|Day's Range||23.20 - 23.52|
|52 Week Range||17.43 - 26.07|
|Beta (3Y Monthly)||1.43|
|PE Ratio (TTM)||546.74|
|Earnings Date||Oct 30, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||0.30 (1.47%)|
|1y Target Est||22.93|
Symantec Corp. , the world’s leading cyber security company, today announced Symantec’s management team will be presenting at the following investor conferences:
Clumio Inc. until now has gone from "three founders and a couple of dogs" in the Palo Alto offices of Sutter Hill Ventures to a 75-employee startup in Santa Clara without attracting too much attention.
As is the case with CA, Broadcom wants to significantly cut the spending of Symantec's enterprise security unit and streamline its offerings. But the unit faces a tougher competitive environment than CA's core mainframe software business.
Broadcom's acquisition of Symantec's enterprise security software unit has divided analysts as the company continues to diversify from its legacy semiconductor business. Broadcom stock rose.
Moody's Investors Service said Friday it was placing Symantec Corp.'s Baa3 senior unsecured debt ratings under review for downgrade, after the security software company said it planned to sell its enterprise software security business to Broadcom Inc. for $10.7 billion and distribute the proceeds to shareholders. Since Baa3 is Moody's lowest investment-grade rating, any downgrade would put the rating into speculative, or "junk" territory. Moody's said that given the increase in "shareholder friendly financial policies," a downgrade of at least one notch is likely. Symantec's stock fell 1.1% in afternoon trading while Broadcom shares gained 2.5%. "Loss of the enterprise business will contribute to a moderate increase in leverage as debt is not being repaid as part of the divestiture," Moody's said. "Leverage and cash flow will be further weakened by stranded costs until they are reduced or eliminated." Year to date, Symantec's stock has rallied 19.9% and Broadcom shares have gained 9.3%, while the S&P 500 has advanced 16.9%.
Broadcom Inc (NASDAQ: AVGO) shares were trading higher Friday after the company announced a $10.7-billion buyout of the enterprise business of Symantec Corporation (NASDAQ: SYMC). A deal between the two tech giants had been rumored for weeks, and the combination should lead to significant cost synergies for Broadcom. Broadcom’s enterprise security business generates about $2 billion in annual revenue, and the company is anticipating $1 billion in synergies in the first year after the deal’s closing.
Symantec (SYMC) stock soared and closed 12.3% higher yesterday after the cybersecurity company announced it was selling assets to Broadcom (AVGO).
U.S. stocks were set to open lower on Friday, as investors grappled with fresh trade tensions, political turmoil in Italy and a surprise contraction in Britain's economy. Shares of chipmakers and other tariff-sensitive stocks came under pressure after a report that Washington was delaying a decision about allowing some trade between U.S. companies and China's telecom equipment maker Huawei again. Micron Technology, Nvidia Corp and Intel Corp fell between 0.7% and 1.7% in premarket trading, while Apple Inc slid 0.8%.
Broadcom is known for acquiring companies. After years of primarily buying chip companies, it entered the software industry last year with its purchase of CA Technologies for almost $19 billion.
Investing.com – Wall Street slipped on Friday, reversing some of the gains of its biggest one-day rise in two months as trade tensions failed to show signs of easing and political uncertainty in Italy and the U.K. added to concerns.
Shares of Symantec rose 3.6% and Broadcom 2% in extended trading. Broadcom last year bought U.S. business software maker CA Inc for $18.9 billion and was reportedly in talks to buy infrastructure software company Tibco Software Inc, which was taken private by Vista Equity Partners for $4.3 billion in 2014.
Investing.com - U.S. futures tumbled on Friday on renewed trade-related jitters after a report that the White House delayed a decision on allowing American companies to restart business with Chinese tech giant Huawei.
U.S. stock futures decline after a report says Washington could delay licenses for American companies seeking to do business with China's Huawei; Uber slides after posting a $5.24 billion second-quarter loss; Activision is lower after a weak third-quarter forecast.
(Bloomberg) -- Broadcom Inc. said it agreed to buy Symantec Corp.’s division that serves business customers for $10.7 billion in cash, adding software designed to keep hackers out of corporate systems.The deal, which is expected to close in Broadcom’s fiscal first quarter ending in January, comes less than a month after the two companies’ discussions for a full merger fell apart over disagreements about the price. The transaction announced Thursday will refocus Symantec on its consumer-facing products, such as the LifeLock identity-protection brand and Norton antivirus software.The acquisition marks Broadcom’s second big bet in software, following its $19 billion takeover of CA Technologies last year. Chief Executive Officer Hock Tan is spreading the reach of the company he built through acquisitions in the chip industry, and is now using a similar playbook to extract value from software assets that are struggling to grow.Symantec has been grappling with major challenges in the past year, facing job cuts, an internal investigation that led to restated earnings and the sudden departure of its CEO in May. The 37-year-old company provides products and services to more than 300,000 businesses and 50 million consumers, according to its website.“This transaction represents the next logical step in our strategy following our acquisitions of Brocade and CA Technologies,” Tan said in a statement. Broadcom will use its sales channels to pitch Symantec products to its corporate customers.Broadcom said it expects $2 billion in sustainable revenue from the acquisition, which will deliver earnings before interest, tax, depreciation and amortization of $1.3 billion. The company will carve out “more than $1 billion of run-rate cost synergies within 12 months following close,” it said in the statement. The transaction doesn’t need approval in China, Chief Financial Officer Tom Krause said on a conference call.Broadcom is maintaining its fiscal year 2019 sales forecast of $22.5 billion. About $17.5 billion of that revenue will come from chips and $5 billion from infrastructure software, the company said in the statement.The chip market is still suffering from the impact of the trade dispute between China and the U.S., but business conditions haven’t worsened since the company gave its forecast in June.Broadcom is going to concentrate the use of its cash flow on paying down debt to make sure it retains its investment rating, Krause said.Symantec had been projected to report overall sales growth of just 1% in its current fiscal year, according to analysts’ estimates. That would follow a 2% decline in the previous 12 months. Symantec’s lackluster outlook mirrors the performance of previous targets for Tan and his team. So far he’s been successful in turning them around.The enterprise business generated about $2.3 billion in sales in the last fiscal year for the Mountain View, California-based company. While Symantec’s revenue may not be growing, the purchase of a piece of the company will bring with it wider profit margins -- higher than those typically achieved in the chip industry, which historically requires greater levels of investment and higher costs to build products. Symantec’s gross margin, the percentage of sales remaining after deducting costs of production, will reach 83% this year, according to estimates. Broadcom’s margin is predicted to be a full 10 percentage points lower than that.Symantec said the sale is expected to generate $8.2 billion after taxes, which it will provide to shareholders after the completion of the deal in the form of a special dividend of $12 a share. It plans to cut jobs, reducing its headcount by about 7%. It’ll also close some facilities incurring charges of about $100 million.Tan’s strategy has been to acquire “franchises,” groups or businesses within companies that have sustainable market positions through technology leadership. He then invests in them to maintain that leadership, running the purchased units as distinct parts of Broadcom, rather than integrating them.The discipline he’s brought to his acquisitions and the spinoff or sale of other assets has created a more profitable company. Broadcom’s estimated gross margin for fiscal 2019 is more than 10 points wider than what the company reported in 2016.Symantec was advised by Goldman Sachs Group Inc. and its legal adviser was Fenwick & West LLP. Broadcom was working with banks including JPMorgan Chase & Co., Bank of America Corp, Barclays Plc, Bank of Montreal, Wells Fargo & Co., Citigroup Inc., HSBC Holdings Plc, Royal Bank of Canada and Morgan Stanley, while Wachtell, Lipton, Rosen & Katz was its legal adviser.(Updates advisers in the final paragraph.)\--With assistance from Nabila Ahmed.To contact the reporter on this story: Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Andrew Pollack, Molly SchuetzFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Broadcom is buying software company Symantec's enterprise security unit for $10.7 billion in an all-cash deal. Constellation Research Principal Analyst and Vice President Holger Mueller discusses how the acquisition helps Broadcom to diversify its business and what it means for the business.
Broadcom has a big deal in the works.. The company is buying Symantec's enterprise security business for $10.7 billion. Yahoo Finance’s Alexis Christoforus, Brian Sozzi and Dan Howley discuss.