Symantec sells off enterprise business for $10.7 billion

Symantec sold off its enterprise security business to chipmaker Broadcom for $10.7 billion, but will retain consumer cyber safety business.

The deal, which includes the Symantec brand name, was approved by Symantec’s board of directors and is expected to close before the end of the year, but still must pass standard regulatory approvals. Symantec will continue to manage the enterprise security business up until the closing at which point Broadcom will take over.

The company will retain control of its device security, identity threat protection and privacy software that that is sold to consumers and small businesses. This segment of Symantec’s business provides the majority of the company revenue.

“With a large and growing market, Norton LifeLock products address consumers’ increasing need for cyber safety. In the first quarter of fiscal year 2020, our Consumer Cyber Safety segment contributed 90% of Symantec’s total company operating income. It is our view that with an operating model focused on increased marketing investments and product development for consumer privacy, we can simultaneously grow our subscriber base and increase our annual revenue per user,” said Rick Hill, interim President and CEO.

A search for a permanent CEO is currently being conducted.