Reports indicate companies couldn’t close gap in acquisition price for security vendor
The security deal of the year looks unlikely as reports indicate that Broadcom broke off talks to acquire Symantec as the two sides couldn’t close the gap on the price.
The Lowdown: Since the deal came to light two weeks ago, Broadcom inched closer to making Symantec a part of its growing and diverse portfolio. As late as last week, reports circulated that Broadcom secured enough financing to pay as much as $22 billion for the beleaguered security vendor.
The Details: According to published reports citing sources, Symantec wanted a premium price of $28 per share, which would’ve given the deal a value of close to $22 billion. Broadcom was only prepared to pay closer to $19 per share or a market value of $18 billion to $19 billion.
The Impact: News of the stalled acquisition talks caused Symantec’s stock prices to fall 18% to $21 per share, well below the Broadcom offer price. If the deal doesn’t materialize, Symantec will have to find another way to right its flagging business.
Background: Symantec has suffered a series of setbacks over the past 18 months, starting with an internal investigation over self-reported accounting irregularities and the sudden departure of CEO Greg Clark in May.