Broadcom has announced it is pausing the sales process for security software business Carbon Black, valued at $1bn.
According to people familiar with the business, the US semiconductor, software and security company companies needed to find the interest they were expecting in the company.
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Carbon Black develops endpoint security in the cloud to detect malicious behaviour and prevent malicious files from attacking companies.
The sale is part of CEO Hock Tan, who confirmed he wanted to streamline the company’s inherited asset portfolio from its $61bn acquisition of software maker VMware in 2023.
Broadcom is looking to sell parts of VMware‘s business which it deems non-vital. Verdict reported on Monday (26 February) that Broadcom had sold its unit that allows users to remotely access desktops to KKR in a deal valued at around $4bn.
Broadcom could try to sell Carbon Black again later, according to the people.
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By GlobalDataAccording to research and analyst company GlobalData, cyber risk is higher than ever, and the consequences of attacks are significant.
Citing Cybersecurity Ventures,, global cybercrime will reach $10.5trn annually by 2025. Tackling this issue requires investment, and GlobalData forecasts that cybersecurity revenues will reach $344bn worldwide by 2030.
Broadcom purchases VMware for $61bn
VMware was founded in 1998 and agreed to the record-breaking Broadcom merger in May 2022.
The $61bn deal is the biggest acquisition by any chipmaker, followed by Advanced Micro Devices‘ $31.3bn buyout of Xilinx.
China was the last major hurdle in the way of the merger, and regulatory approval from the Chinese authorities came through on 21 November 2023, reported Reuters.
Following an in-depth multi-phase investigation, the UK competition watchdog approved the multi-billion dollar merger.
In July, the European Commission approved the deal on the condition that Broadcom would meet specific compliance commitments it had made to ensure the merger would not lead to a conglomerate effect in the server market.
After purchasing both CA technologies and Symantec Corp’s corporate security business, Tan confirmed he wanted to turn VMware into the primary go-to for the company’s software operations.
