Why chipmaker Broadcom is spending big bucks for aging enterprise software companies

Tech News

Last year Broadcom, a chipmaker, raised eyebrows when it acquired CA Technologies, an enterprise software company with a broad portfolio of products, including a sizable mainframe software tools business. It paid close to $19 billion for the privilege.

Then last week, the company opened up its wallet again and forked over $10.7 billion for Symantec’s enterprise security business. That’s almost $30 billion for two aging enterprise software companies. There has to be some sound strategy behind these purchases, right? Maybe.

Here’s the thing about older software companies. They may not out-innovate the competition anymore, but what they have going for them is a backlog of licensing revenue that appears to have value.

Products You May Like

Articles You May Like

Tech companies get a reprieve thanks to a reversal from the President on tariffs
UK ICO Investigates Facial Recognition Technology in King’s Cross
RedDoorz raises $70M to expand its budget hotel network in Southeast Asia
China’s Transsion and Kenya’s Wapi Capital partner on Africa fund
Microsoft warns of new BlueKeep‑like flaws

Leave a Reply

Your email address will not be published. Required fields are marked *