Summary
This 8-K filing by Broadcom Inc. (AVGO) on August 9, 2019, announces a significant definitive agreement to acquire Symantec Corporation's Enterprise Security business for $10.7 billion in cash. This strategic acquisition, if completed, will substantially expand Broadcom's footprint in the cybersecurity market, adding Symantec's established enterprise security assets to its portfolio. The transaction is subject to customary closing conditions, including regulatory approvals such as Hart-Scott-Rodino, EU, and Japan antitrust clearances, with a target closing date around February 8, 2020, extendable by three months. Broadcom has secured committed financing of up to $12 billion in term loans to fund the acquisition and related expenses, alongside an additional $3.5 billion to refinance existing senior notes. This move signals Broadcom's aggressive growth strategy through acquisitions, aiming to bolster its enterprise solutions offerings.
Key Highlights
- 1Broadcom Inc. entered into a definitive asset purchase agreement to acquire Symantec Corporation's Enterprise Security business for $10.7 billion.
- 2The purchase price is on a cash-free, debt-free basis.
- 3The transaction is subject to customary closing conditions, including antitrust approvals in the US, EU, and Japan.
- 4The deal is expected to close by February 8, 2020, with a potential three-month extension.
- 5Broadcom has secured committed financing of up to $12 billion in term loans for the acquisition and related costs.
- 6An additional $3.5 billion in term loans is committed to refinance existing senior notes maturing in early fiscal year 2020.
- 7This acquisition represents a significant expansion for Broadcom into the enterprise cybersecurity market.