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.
Written by Ron Miller
This news first appeared on https://techcrunch.com/2019/08/14/why-broadcom-is-looking-to-aging-enterprise-software-in-a-softening-chip-market/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29 under the title “Why chipmaker Broadcom is spending big bucks for aging enterprise software companies”. Bolchha Nepal is not responsible or affiliated towards the opinion expressed in this news article.