Broadcom Might Buy SAS, Another 'Vendor on the Wane'?

Broadcom reportedly is in talks to acquire SAS Institute, the global software company, in a deal potentially worth $15 billion-$20 billion.

The Wall Street Journal broke the news that Broadcom is pursuing SAS, citing people familiar with the matter. It said the two companies could finalize a deal in the coming weeks, assuming the talks don’t fall apart.

SAS is the world’s largest privately held software business. It generates about $3 billion in annual revenue.

SAS provides software applications including business intelligence, data integration, fraud management, financial intelligence and IT management.

Broadcom didn’t respond to requests for comment. A SAS spokesperson sent us the following comment:

“SAS does not comment on rumors or speculation,” the spokesperson said. “SAS remains focused on furthering innovation to best serve our customers.”

Thoughts on Potential Deal

Rik Turner is Omdia‘s principal analyst of cybersecurity. (Omdia and Channel Futures are both owned by Informa.)

Omdia’s Rik Turner

“My first thoughts are that Broadcom has previously bought CA Technologies and Symantec in the world of software, neither of which is exactly in its first flush of youth, nor indeed the heavy hitter that they once were,” he said. “Vendors on the wane, you might say. [I’m] wondering whether this is more of the same.”

SAS has customers in 145 countries. More than 82,000 business, government and university sites have installed SAS software.

According to Tracxn, Broadcom has made 36 acquisitions and three investments. The company has spent nearly $41 billion for the acquisitions.

For the second quarter of 2021, Broadcom reported $6.6 billion in revenue, up 15% from the year-ago quarter. It also reported nearly $3 billion in profit.

Earlier this summer, Broadcom rolled out Expert Advantage, an expanded global channel services partner program to drive growth across Broadcom Software solutions. Expert Advantage expands specialized service partnerships to better serve joint customers and maximize their software investments.