Broadcom is in talks with SAS Institute to buy the company.
Broadcom Inc. AVGO +1.16% has been in talks to buy SAS Institute, according to reports from people familiar with the matter. Broadcom is looking for ways of beefing up its enterprise software division and this acquisition could be just what they need!
The shadowy figure of SAS, a Scandinavian company that has been valued at $15-20 billion is in the process of being acquired. Talks have broken down during negotiations but are expected to resume later this week with several parties bidding on an acquisition or takeover bid for the enterprise value.
The deal could be finalized within the coming weeks provided negotiations don’t break down again and multiple bidders are vying for control over Sas's private valuations which include assumed debt as well as cash from their balance sheet.
Well, I’m not really sure that this could be finalized in the coming weeks. What do you think?
Broadcom is the world's second-largest semiconductor company, and it has been on a constant search for acquisitions since former President Trump blocked its quest to buy rival Qualcomm in 2018. In just one year, Broadcomm’s stock prices have risen 50% over their original price.
Hock Tan, the CEO of Broadcom has been busy diversifying and expanding into new markets. In 2018 he agreed to buy Computer Associates for $19 billion with a goal towards software sales. He followed up that success in 2019 by purchasing Symantec's enterprise business for 10.7 billion dollars all so they could better compete globally against tech giants like Microsoft and Amazon Web Services (AWS).
Cary, N.C.-based SAS sells analytics and business intelligence software that is used by universities to analyze troves of agricultural data through a program called the Statistical Analysis System, according to its website. Established in 1976 with help from co-founders Jim Goodnight and John Sall, their company now has over 12000 employees globally who use their products for things like analyzing large amounts of financial market information or assessing risk among patients at military hospitals as part of post-deployment healthcare initiatives around the world
Big technology firms have been laser-focused on expanding software businesses, with Salesforce.com Inc last year agreeing to buy messaging company Slack Technologies Inc for a whopping $27 billion and Microsoft Corp earlier this year agrees to pay Nuance Communications inc 16 billion dollars which is an astounding achievement in the history of communication giants!
The latest potential deal comes as large mergers and acquisitions are thrown into question, especially in the technology sector. Executives have been monitoring whether or not Biden's administration will be tougher on business consolidations and tech giants.
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