Jul 13, 2021 12:35:00

It is reported that Broadcom, a major semiconductor manufacturer, is negotiating an acquisition of more than 1 trillion yen with SAS, which develops data analysis software.

It was reported that Broadcom, a major semiconductor manufacturing company based in the United States and Singapore, is in talks to acquire SAS , a software company that uses AI to perform marketing analysis. Semiconductor-led Broadcom has been successful with its 2018 acquisition of a software company, and the acquisition is expected to aim to enhance its enterprise software.

Broadcom in Talks to Buy Software Firm SAS --WSJ
https://www.wsj.com/articles/broadcom-in-talks-to-buy-software-firm-sas-11626103731

Broadcom reported in talks to buy closely held SAS Institute --SiliconANGLE
https://siliconangle.com/2021/07/12/broadcom-reported-talks-buy-closely-held-sas-institute/

Broadcom is a listed company founded in 1991. A fabless company that handles a wide range of semiconductor and IC products that cover computer networks and communication networks in general. Broadcom's main business is semiconductor manufacturing, but it is also known for having acquired a number of companies to enter new markets, and in 2017 it was $ 100 billion (about 11 trillion) against its peer Qualcomm. It was also reported that they tried to acquire more than Yen).

'That was an unprecedented event,' Qualcomm CEO looks back on Broadcom's hostile takeover attack-GIGAZINE

Broadcom, then headquartered in Singapore, relocated its headquarters to the United States afterthe acquisition of Qualcomm was blocked by former President Donald Trump for 'national security concerns.' After that, it acquired CA Technologies , an American software company, and expanded its software business. Broadcom's software accounts for about 28% of total revenue, and the acquisition is expected to aim to strengthen the software division.

SAS, on the other hand, is a privately held company founded in 1976. We are widely involved in analysis software such as marketing and risk management, including 'Statistical Analysis System ', a statistical analysis tool that boasts annual sales of 3 billion dollars (about 330 billion yen).

SAS is also known for providing generous benefits to its approximately 5,200 employees, with employee turnovers averaging over 20% per year, compared to less than 4% per year on average. There is. As for why it's a privately held company, SAS CEO James Goodnight said in 2000, 'One of the reasons companies go public is funding, but we're making a lot of money and we're funding. not required. also, I want to avoid the pressure 'that meet the revenue forecast on a quarterly basis had said .

In this acquisition, the overseas newspaper Wall Street Journal evaluated the corporate value of SAS as $ 15 billion (about 1.7 trillion yen) to $ 20 billion (about 2.2 trillion yen), saying, 'Negotiations will be in the future. It will be completed within a few weeks. ' It's unclear why SAS is considering selling, and Mike Gualtieri, an analyst at research firm Forrester Research, said, 'Goodnight CEO is 78 years old and there may be many reasons to consider selling. There is. ' 'Given the widespread penetration of SAS into large corporations and the absolute need for sophisticated analytical models, the reported acquisition price seems very reasonable,' Gualtieri said. rice field.