By Dhirendra Tripathi
Investing.com – Broadcom (NASDAQ:AVGO)stock rose 1% on a report in The Wall Street Journal the chipmaker is in talks to buy closely-held software firm SAS for an enterprise value of anywhere between $15 billion and $20 billion.
A deal hasn't yet been reached and the talks could go either way, according to the WSJ report.
Broadcom, a semiconductor powerhouse built largely through acquisitions, has been looking for more deals since former President Donald Trump blocked its quest to buy rival Qualcomm (NASDAQ:QCOM) in 2018, citing security risks. Broadcom has since moved its headquarters to the U.S. from Singapore.
Cary, N.C.-based SAS sells analytics, business-intelligence and data-management software. It traces its roots back to the 1960s, when universities teamed up to analyze troves of agricultural data through a program called the Statistical Analysis System, according to its website.
The company has more 12,000 employees and customers around the world. It is still run by co-founders Jim Goodnight and John Sall.
Earlier this month, the antitrust regulator accused Broadcom of monopolizing the market for semiconductor components.
It ordered “the semiconductor supplier to cease its anticompetitive conduct."
The complaint says Broadcom illegally maintains its power by entering into long-term agreements with both OEMs and service providers, thus preventing these customers from purchasing chips from Broadcom’s competitors.