Broadcom Inc. is selling Symantec’s Cyber Security Services unit to consultancy Accenture plc in a deal announced today.

Broadcom is a major supplier of data center chips that in 2018 launched a push into the software market. As part of the initiative, the company this past August inked a deal to acquire Symantec Corp.’s enterprise security business for $10.7 billion. The enterprise business kept the Symantec name while the part of the firm that wasn’t bought by Broadcom rebranded to NortonLifeLock under new leadership.

The Cyber Security Services unit being sold to Accenture assists large enterprises in keeping their systems safe from hackers. According to Broadcom, the group provides threat intelligence about hacker activity and responds breaches detected in companies’ networks . The unit has about 300 employees spread out across six security operations centers in the U.S., the United Kingdom, India, Australia, Singapore and Japan.

“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 cybersecurity threats aimed at their companies,” Accenture Chief Executive Officer Julie Sweet said in a statement.

Frost & Sullivan Inc. ranks the consultancy as one of the top five players in the security services market alongside Deloitte LLP, IBM Corp., EY Global Ltd. and PwC LLP. The segment as a whole grew by 18.3% from 2017 to 2018, while the top five players registered an even more impressive 27.6% revenue gain.

The projections by Frost & Sullivan estimate that this year-over-year growth will continue in the “near term.” Buying Symantec’s Cyber Security Services unit is therefore a logical move for Accenture, one that should enable the consultancy to take better advantage of the increasing enterprise spending in this segment. 

The same double-digit growth that led Accenture to swoop in also might raise the question of why Broadcom didn’t hold onto the unit. But the company’s focus lies elsewhere. Broadcom spent $10.7 billion on Symantec’s enterprise business for its high-margin software assets, which it hopes will help improve profits in the long run. 

Photo: Symantec