Broadcom sells Symantec services unit to Accenture

Mergers and Acquisitions
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Sales come just months after closure of $10.7bn acquisition

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8 January 2020 | 0

Accenture is to buy Symantec’s cyber security services business just months after the closure of its $10.7 billion (€9.6 billion) acquisition by Broadcom.

The purchase of Symantec’s threat detection and incident response capabilities will be used to bolster Accenture’s managed security services division, the consultancy said in a statement. 

Financial terms of the deal were not disclosed, and the purchase is expected to close in March 2020 subject to conditions.

“Cyber security has become one of the most critical business imperatives for all organisations regardless of industry or geographic location,” said Julie Sweet, Accenture’s chief executive officer. “With the addition of Symantec’s cyber security services business, Accenture Security will offer one of the most comprehensive managed services for global businesses to detect and manage cyber security threats aimed at their companies.” 

Kelly Bissell, Accenture Security senior managing director, called the acquisition a game-changer, claiming it will help Accenture “provide flexibility rather than a ‘one size fits all’ approach to managed security services”. 

According to Technology Business Review senior analyst Bozhidar Hristov, the deal will “add a node (or six) to a well-established network of cyber managed services capabilities around the globe.”

Symantec currently has six security operations centres, however, its local ranks were recently depleted by a series of lay-offs implemented by Broadcom, which included former channel chief, Klasie Holtzhausen. Overall up to 7% of Symantec’s global workforce were axed during Broadcom’s consolidation process of its enterprise security assets. 

Meanwhile, the acquisition, alongside that of Germany-based SAP shop Maihiro, will offer a natural extension of Accenture’s previous investments, Hristov said. He cited the company’s work with SAP around project Elevate and Accenture Security’s role as the “connective tissue” in the company’s innovation-led agenda.

TBR said it expects Accenture to pursue more acquisitions this year, having signalled its intent to spend $1.6 billion (€1.4 billion) in FY20.

IDG News Service

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